Commercial property investment can appeal to investors seeking rental income, longer lease terms and diversification from residential property. It can include offices, retail premises, warehouses, industrial units, medical suites, childcare centres and mixed-use properties.

However, commercial property is not simply residential property with a business tenant. Lenders assess the risk differently, and investors need to understand the role of lease strength, tenant quality, property type and vacancy risk.

What lenders assess in commercial investment loans

• Lease term and remaining options
• Tenant profile and trading strength
• Rental income and outgoings
• Property location and marketability
• Specialised versus general-use property
• Borrower deposit and overall asset position
• Vacancy risk and ability to service without rent

A strong lease to a quality tenant may improve lender confidence. A short lease, vacant property or highly specialised premises may make the application more conservative.

Commercial property and cash flow

The cash flow profile of a commercial investment can be attractive, but investors should allow for periods of vacancy, incentives, maintenance, management fees, land tax where applicable, insurance and potential capital expenditure.

If the property becomes vacant, the investor may need to meet loan repayments without rental income. This is why lenders may shade income or require evidence that the borrower can manage the debt even if conditions change.

GST, duty and professional advice

Commercial property transactions can involve GST, duty and structuring considerations. The ATO publishes guidance about GST and commercial property, while Queensland Revenue Office provides transfer duty information. The exact treatment depends on the contract, vendor, property type and structure, so legal and accounting advice is essential.

How Viewpoint Finance Group helps investors

We help investors compare lenders and structure commercial investment loans around the property, lease, security and borrower position. This includes clients across Brisbane, the Gold Coast, Hope Island, Helensvale, Coomera, Pimpama and the broader South East Queensland region.

Frequently Asked Questions

Is a commercial investment loan harder to get than a residential investment loan?

It can be more complex because lenders review lease terms, tenant risk, property type and commercial marketability.

Can an SMSF buy commercial property?

An SMSF may be able to buy commercial property under strict rules, including LRBA rules if borrowing is involved. Specialist advice is essential.

Does GST apply to commercial property?

GST can apply to commercial property depending on the circumstances. Buyers should obtain tax and legal advice before signing.