Commercial property loans: offices, shops, warehouses and industrial

Two kinds of commercial borrower

• Owner occupiers: your business buys the premises it trades from. Lenders look at the business's financials and how comfortably its profits cover the repayments.
• Investors: you buy a property leased to a tenant. Lenders look at the lease, the tenant and how well the rent covers the interest.

What lenders look at

• The property and its use: offices, retail, industrial and specialised properties are each treated differently.
• The lease: who the tenant is, the rent, and how long the lease has left to run.
• Income cover: how many times the rent or the business profit covers the interest.
• A valuation: commercial valuations look at rent and comparable sales, so a short lease or a vacancy could lower the value a lender uses.
• The borrower's position: financials, other debts and the structure buying the property.

The Reserve Bank's October 2026 review found competition for commercial property lending is strong from banks and non bank lenders, especially for higher quality properties, with banks' recent growth led by industrial property. That competition is worth using: terms vary widely between lenders for the same property.

GST, duty and structure

GST could apply to a commercial purchase unless it qualifies as a going concern, and stamp duty usually applies too. Commercial loans to a company for business purposes generally sit outside the consumer credit legislation, according to ASIC. Your accountant and solicitor should confirm GST, duty and the right structure before you sign.

Larger and more complex loans

Larger loans, multi tenant properties, specialised assets and portfolios are where lender choice matters most. Banks, non bank lenders and private lenders each have different appetite for size, location and lease profile. A broker who knows where each one is active could save months and a lot of money.