Lending options for commercial property

Despite some sectors of the property market suffering downturns during COVID (Shopping centers, tourism, dine in restaurants) several sectors have seen solid increases in yield and price. Small industrial, warehousing, logistics, supermarkets, chemists, take-away food have all performed well and are in high demand. Investing in small commercial properties is becoming more common and accessible for single investors, self-managed super funds and business owners.

  • Sydney rents per square meter for industrial properties are presently between $123 (Outer) and $206 (South), Yield is between 4.7% and 5.3% and capital value per square meter between $2460 (Outer) and $4400 (South). Source. LJ Hooker Commercial 2020 Market monitor

There are several lenders who have an appetite for lending to investors and owner occupiers and offering very favourable terms not too dissimilar from residential loans. Rates can range from 2.9% to 7.5% depending on type of property, borrower type, deposit etc. Recent commercial transactions we have settled on include a Yoga studio operator purchasing their own premises and an established building company purchasing a small warehouse in their self-managed super fund (SMSF).

10 views0 comments

Recent Posts

See All

December 2020 saw the highest level of residential loan settlements on record at $64B. Broker market share of the loan settlements also increased to 59%. The record lending levels are attributed to; -