Types of Commercial Property in Australia
How commercial property finance differs by property type
Each type of commercial property carries its own lender appetite, maximum LVR and pricing. The driver is re-leasing risk: the easier a building is to re-let or repurpose, the more lenders compete and the higher the LVR. Generic assets like offices and warehouses sit at the top; single-use assets like service stations and specialised property sit lower.
Compare the typical terms across every type below, then go straight to the detailed finance guide for yours. We arrange finance across all of them, drawing on a panel of 60+ commercial lenders.
- Property types 13 asset classes
- Lender panel 60+ commercial lenders
- Best for Choosing your class
- The asset Re-leasing risk
- Your purpose Occupy or invest
- Typical max LVR 65% to 95% by type
- Match Lender to asset type
- Compare LVRs and rates by type
- Guide To your specific type
All information is general guidance only. Rates and terms vary by property type and lender, see our commercial property loan interest rates page for current ranges. Not financial advice.
Types of commercial property in Australia, compared
Every commercial property type we finance, with the typical maximum LVR and who each one tends to suit. Maximum LVRs are indicative and vary by the individual asset, location and borrower. Select any type for the full finance guide.
| Property type | Typical max LVR | Best suited to |
|---|---|---|
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Up to 80% | Professional-services owner-occupiers, and investors after institutional-grade tenants on longer leases. |
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Up to 70% | Shop owner-occupiers, and investors who favour essential-anchored sites with strong tenant covenants. |
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Up to 80% | Owner-occupier trades and manufacturers, and investors drawn to long leases and low management. |
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Up to 80% | Logistics and storage occupiers, and investors wanting e-commerce-driven demand and minimal upkeep. |
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Up to 95% | Medical and allied health owner-occupiers, who often access the highest LVRs, and investors after recession-resistant tenants. |
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Up to 70% | Operators buying their own centre, and investors after long leases backed by government-supported demand. |
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Up to 70% | Publican and accommodation operators, and investors comfortable with trade-linked, multi-stream income. |
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Up to 70% | Fuel-site operators, and investors after long net leases to national brands, mindful of environmental checks. |
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Up to 75% | Established care operators, and investors after stable, demographically-supported income despite regulatory complexity. |
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Up to 70% | Owner-operators, and hands-off investors drawn to low-maintenance, diversified-tenant income. |
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Up to 70% | Buyers wanting diversified income under one title, where the commercial-to-residential split drives the terms. |
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Up to 65% | Developers and land-bankers, who tend to face lower LVRs and shorter terms while the site is unimproved. |
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Up to 65% | Buyers of single-use assets such as gyms, car washes or funeral homes, where lender selection matters most. |
Looking for pricing? See current indicative interest rates for every property type on our commercial property loan interest rates page. LVRs shown here are indicative and vary by the individual deal.
What to weigh when you're choosing a property type
If you want commercial property in your portfolio but haven't settled on a class, the decision usually comes down to a handful of things. I've set them out the way I'd talk a client through it, because the asset you pick and the finance behind it are really one decision, not two.
Lender appetite shifts more than the headline rate
The property type quietly sets your borrowing power, and your deposit. Generic assets like offices, industrial and warehouses have the widest lender pools and the highest LVRs, often up to 80%. The more single-use the asset, the lower the leverage: service stations and specialised property tend to sit around 65 to 70%. Medical is the exception, where strong demand can push LVRs higher still.
For a leased asset, the tenant often matters more than the building
On an investment purchase, lenders lean heavily on the lease. The WALE, the strength of the tenant and the type of business they run can move your terms more than the bricks do. A long lease to an essential-service or national tenant unlocks the sharpest terms across almost any class. It's why I want to see the tenancy schedule before you make an offer, not after.
Some types carry risks the lender prices in
A few classes come with considerations that surface at valuation. Service stations bring environmental checks; childcare and aged care carry regulatory and licensing complexity; specialised assets like gyms or car washes carry re-leasing risk. None rule a deal out, but they narrow the lender pool, and they're far cheaper to handle raised early than discovered late.
How you buy changes the deal as much as what you buy
The structure behind the purchase shifts the terms again. Buying to lease out as an investment is assessed differently from buying premises to run your own business from as an owner-occupier, who usually gets sharper rates. With a self-managed super fund, it's worth modelling an SMSF purchase first, since the tax position can change the economics. Get the structure right before contracts are signed, changing the purchaser's name afterwards can trigger stamp duty problems.
Work through those four and the shortlist usually narrows itself. From there it's about matching you to the right lender for that asset and modelling the real cost, which is the part we do for you. Talk it through with us and we'll help you weigh the type against the finance before you commit.
Top considerations when financing a commercial property
Once you've settled on a type, a handful of things decide whether your finance comes together cleanly and on good terms. These are the ones we work through with every client, whatever the asset class.
| Consideration | Why it affects your finance | How we help |
|---|---|---|
| Matching the lender to the asset | Only part of the panel actively writes any given property type. Send the deal to the wrong credit team and you get a decline or a conservative offer, not your best terms. | We know which lenders are actively writing your asset type right now, and put your deal in front of the ones who want it. |
| Sizing the deposit to the likely LVR | The headline maximum LVR rarely applies to every deal. Budget to it and you risk a funding shortfall at settlement when the real figure lands lower. | We give you a realistic LVR for your type and profile upfront, so your deposit is sized to the deal you'll actually get. |
| Having your numbers ready | Clean financials and a clear tenancy schedule are the single biggest lever on speed. Gaps and late documents are where most deals stall. | We tell you exactly what each lender needs and package the application the way they want to see it, before it goes in. |
| Getting the structure right early | Buying in a company, trust or SMSF changes the terms and the tax position. Fixing it after contracts are signed can trigger stamp duty. | We line up the structure and the lending together, working alongside your accountant, before you make an offer. |
| Reading the asset-specific risks | Environmental, licensing or re-leasing issues attached to certain types surface at valuation, and can quietly stall a deal late in the piece. | We flag the risks tied to your asset type early and get them handled before they hold up settlement. |
Get these right and most commercial deals come together without drama. Talk it through with us and we'll map the likely path for your purchase before you commit.
Commercial property types, answered
The questions investors most often ask me when they're deciding which type of commercial property to buy.
What are the main types of commercial property in Australia?
Commercial property splits into a generic core, office, retail, industrial and warehouse, and a longer tail of more specialised assets like medical, childcare, hotels, service stations, aged care and self-storage. The line that matters for both investors and lenders is how single-use the asset is: a warehouse suits almost any tenant, while a car wash or funeral home is built for one purpose. That difference drives the yield, the tenant profile and the finance, which is why the comparison table above is worth a look before you settle on a class.
Which type of commercial property is the best investment?
There's no single best type, it depends on what you're after. As a broker I'd frame it by what each class tends to offer:
- Income and stability: industrial and warehouse have been strongly favoured, with long leases and low management
- Recession-resistant tenants: medical, childcare and government-leased assets
- Higher yield, more involvement: hotels, service stations and specialised assets, which trade narrower lender appetite for stronger returns
The right answer matches your risk appetite, timeframe and how hands-on you want to be. If you're weighing the numbers, our commercial property yield calculator is a good place to start, and we'll help you check the highest-yielding option actually funds cleanly.
Which commercial property type is easiest to finance?
Generally the generic classes, office, industrial and warehouse, because the widest pool of lenders will write them and the building suits many tenants. They also tend to carry the highest LVRs, often up to 80%. Medical and dental is the standout exception: it's specialised, but strong tenant demand and reliable income mean lenders compete hard for it.
Single-use assets like service stations and specialised property are the most selective, which is exactly where the right business real estate loan brokers earn their keep.
Which commercial property type has the highest LVR?
Medical and dental typically sits at the top, where strong, stable tenant demand can support the highest LVRs of any class. The generic classes, office, industrial and warehouse, follow, commonly up to 80%. From there it steps down with how single-use the asset is: retail, childcare and hotels often sit around 70%, while genuinely specialised property and land tend to be the most conservative. The exact figure always depends on the individual deal, the tenant and the borrower, so treat the table above as indicative rather than a promise.
Does the property type change my interest rate and LVR?
Yes, significantly.
The property type sets how easily a lender could re-let or repurpose the building if they ever had to, and that drives both pricing and leverage. Lower re-leasing risk means more lenders competing, higher LVRs and sharper rates; higher risk means the opposite. It's why an office and a service station of the same value can finance quite differently.
For the current indicative rate by type, our commercial property loan interest rates page sets them out side by side.
What's the difference between buying to occupy and buying to invest?
It changes the whole assessment. As an owner-occupier buying premises to run your own business from, lenders see lower risk, so you tend to get sharper rates and a higher LVR. As an investor, the lender leans on the tenant, the lease and the yield instead. This holds across every property type, an owner-occupied medical suite and a leased one are assessed differently even though it's the same building. If you're not sure which path fits, it's one of the first things we work out together.
Can I buy any commercial property type through my SMSF?
Most types, yes, provided the property qualifies as business real property, which the great majority of commercial assets do. A common structure is to hold the premises in a self-managed super fund and lease it back to your own business at market rent, under a limited recourse borrowing arrangement.
LVRs inside super are more conservative than outside it, and the compliance rules are specific, so it's worth modelling before you commit. Our SMSF commercial property loans page covers the full pathway, and the ATO sets out the SMSF investment restrictions and the business real property exception in plain terms.
My property type isn't listed. Can you still help?
Almost certainly. The classes above cover the most common assets, but commercial property has a long tail, and we regularly finance things that don't fit a neat box, from quarries and marinas to niche manufacturing and agribusiness. If it's purpose-built and a mainstream bank finds it hard, it usually falls under specialised property. And if you're after finance for the business rather than the premises, that sits with our business loans.
The quickest way to know where you stand is to ask us directly.
Have a question? Just ask
Book a free, no obligation chat with our commmercial lending experts, or call 1300 262 098 to speak to our team.
