Commercial is a different asset
Commercial property is valued mainly on its income. That income depends on the lease terms, the tenant's strength and how easy the space would be to re-lease. Yields are often higher than residential, and vacancies can be longer.
What we assess
- Lease: term remaining, rent reviews, options and outgoings recovery
- Tenant: business strength, industry and how long they have traded there
- Re-leasing risk: demand for the space if the tenant leaves
- Building: condition, compliance and capital works due
- Location: access, parking, zoning and surrounding uses
- Price: yield and value against comparable sales and leases
Who we buy commercial for
| Buyer | Common goal | Note |
|---|---|---|
| Investors | Higher income and longer leases | Diversifies a residential portfolio |
| SMSF trustees | Business real property for the fund | SMSF borrowing is limited to business real property since 10 August 2026 |
| Business owners | Owning your own premises | Structure advice comes from your accountant |
SMSF and ownership decisions belong to your accountant or a licensed financial adviser. We assess the property and the lease.
Common questions
Can my SMSF still borrow to buy commercial property?
Yes. Since 10 August 2026, SMSF borrowing is limited to business real property such as commercial premises.
Is commercial riskier than residential?
It carries different risks, mainly longer vacancies and dependence on tenants. Higher yields usually reflect that.
Can you buy premises for my own business?
Yes. We assess the property and negotiate the purchase. Your accountant advises on the ownership structure.
Related
General information only. It does not consider your objectives, financial situation or needs, and is not financial, credit, tax or legal advice. Rules change, so check current law and get advice from a licensed professional before acting.