Melbourne Commercial Property Loans Up To 85% LVR
Melbourne commercial property loans from $500K-$100M+. Expert finance brokers, 60+ lenders. LVR’s from 60% – 90%. All Melbourne metro and regional areas – CBD, Box Hill, Dandenong, Tarneit, Footscray and Sunshine, Tullamarine, Preston, Brunswick and more.
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Melbourne Commercial Property Loan Rates & Terms Summary
Current Market Rates
- Interest Rates: 5.95% - 8.10%
- Commercial Yields: 4.8% - 6.5% typical
- LVR Range: 60% - 90%
Loan Terms & Speed
- Minimum Loan: [sbp_min_cp_loan]
- Approval Time: [sbp_approval_time]
- Lender Panel: 60+ active lenders
Popular Melbourne Property Types
What's Driving Commercial Growth in Melbourne?
Major Projects Driving Value
Infrastructure megaprojects reshaping commercial property landscape
The Melbourne Metro Tunnel, Melbourne Airport Rail Link, and Suburban Rail Loop are fundamentally reshaping commercial property values. New Metro stations have increased values in CBD fringe areas and Parkville by 15% since 2021. The Suburban Rail Loop (opening 2025) is creating unprecedented demand for commercial property, with land in Box Hill and Clayton up 25-30% in two years.
The Melbourne Airport Rail Link will unlock significant commercial opportunities along the corridor, with early investors already seeing 15-20% gains in strategic locations. These infrastructure investments are creating new commercial nodes beyond the traditional CBD, offering ground-floor opportunities in emerging precincts.
Occupancy Rates Tightening
Flight to quality driving premium office demand
Melbourne's commercial property market shows tightening vacancy rates across all sectors: 8% for offices, 3-4% for retail, and just 1-2% for industrial properties. Fintech companies, biomedical firms, and advanced manufacturing operators are driving demand, particularly in Fishermans Bend, Cremorne and Clayton.
The "back to office" mandate is gaining momentum, with Collins Street and Bourke Street recording 90% occupancy. Green-rated buildings command 10-15% rental premiums, providing stable income streams as tenants commit to longer leases in quality spaces.
Superior Returns Over Residential
Commercial yields attracting sophisticated investors
Commercial properties in Melbourne deliver net yields of 4.5-6%, significantly above residential yields of 2-3%. Prime Collins Street locations command premium rents of $800-950/sqm annually, while emerging areas like Collingwood offer value at $350-420/sqm with stronger growth potential.
This yield gap makes commercial property increasingly attractive to investors seeking passive income above inflation. With annual rent escalations typically set at 3-3.5%, commercial properties provide a hedge against rising costs while delivering superior cash flow.
Value Growth Outpacing Markets
Infrastructure investment securing long-term appreciation
Melbourne commercial property has delivered 20% growth over five years, with industrial leading at 25-30% growth. Infrastructure investment of $70+ billion over the next decade will continue driving values. Rezoning opportunities in Fishermans Bend and Arden present 30-40% uplift potential.
Government commitment to Melbourne as Australia's fastest-growing city ensures long-term growth, with population expected to overtake Sydney by 2032. The combination of population growth, infrastructure development, and limited supply in key precincts creates compelling investment fundamentals.
Ready to capitalise on Melbourne's commercial property opportunities?
Get Expert Finance Solutions →Melbourne Commercial Property Loan Types
Tailored finance solutions for every Melbourne commercial property opportunity
Purchase Loans
Finance your Melbourne commercial property acquisition with competitive rates and flexible terms. From CBD offices to suburban retail, we structure the right solution.
Refinancing
Replace existing debt to access better rates or release equity for expansion. With Melbourne values rising steadily, many owners can unlock substantial capital.
Construction Finance
Fund your Melbourne development project with staged drawdowns aligned to construction milestones. From fit-outs to major developments.
SMSF Loans
Use your super to purchase commercial property with tax advantages. Popular for business owners buying their own premises.
Bridging Finance
Fast short-term funding for auctions and time-critical opportunities. Secure Melbourne properties while arranging long-term finance.
Development Finance
Comprehensive funding for Melbourne property development projects. From land acquisition through to project completion with structured facility options.
Nadine Connell
Commercial Finance Broker
Melbourne Commercial Property Loan Areas
We provide commercial property loans throughout Greater Melbourne, from the CBD to the western industrial zones. Our deep market knowledge means we understand each precinct's unique dynamics and which lenders offer optimal terms for different Melbourne locations.
Melbourne CBD & Docklands
Financing for A-grade office towers, waterfront developments and government-tenanted buildings. The CBD offers Melbourne's most competitive rates, with institutional lenders competing aggressively for prime assets.
Inner South & St Kilda Road
Melbourne's premier business boulevard featuring mixed-use developments and creative offices. St Kilda Road's proximity to arts precincts and the CBD maintains strong lender appetite.
Eastern Business Corridor
Melbourne's booming eastern corridor with strong Asian business connections. The Suburban Rail Loop is transforming values, with Box Hill emerging as Melbourne's third CBD.
West Melbourne Industrial
Victoria's logistics powerhouse with direct port access and major distribution centres. Vacancy rates under 1.5% drive strong lender confidence for warehouse and industrial facilities.
Inner North Creative Hub
Melbourne's tech and creative epicentre with converted warehouses and boutique offices. Strong demand from startups and creative industries drives competitive lending for character properties.
Southeast Growth Corridor
Melbourne's southeast powerhouse anchored by Monash University and industrial precincts. Strong biomedical and advanced manufacturing sectors attract specialist lenders with competitive terms.
Melbourne Commercial Property Loan Rates & Terms
Market rates from 5.95%Location Impact on Your Rate (Indicative Only)
Base rate: 5.95% for prime CBD properties
- Melbourne CBD Base rate
- Docklands Base rate
- Southbank Base rate
- St Kilda Road +0% to +0.25%
- Box Hill +0.25% to +0.5%
- Clayton +0.25% to +0.5%
- Fishermans Bend +0.5% to +0.75%
- Cremorne +0.5% to +0.75%
- Western Industrial +0.5% to +0.95%
- Inner North +0.75% to +1.0%
- Eastern Suburbs +0.5% to +0.95%
- Outer Suburban +1.0% to +1.45%
Nadine Connell
Commercial Finance Broker
Melbourne Market Investment Strategies
Suburban Rail Loop
Consider properties within 800m of planned SRL stations. Early investors in Box Hill and Clayton already seeing 20-25% gains ahead of construction. Next opportunities might be: Cheltenham, Monash, Glen Waverley, Burwood.
Creative Office Aggregation
Potential acquire character warehouses in inner north for tech/creative tenants. You could bundle smaller spaces into campus-style offerings for 30-40% rental premiums. Prime zones: Fitzroy, Collingwood, Brunswick, Richmond.
Logistics Hub Development
Purchase industrial near Port of Melbourne and Western Ring Road. E-commerce boom driving 6-8% annual rental growth with sub-2% vacancy. Focus areas: Altona, Laverton, Truganina, Derrimut.
Application Readiness Checklist
Typical commercial property loan applications require the following documents. Our team will assist getting everything together if needed.
Nadine Connell
Commercial Finance Broker
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Frequently asked questions
How much deposit do I need for a commercial property in Melbourne?
Most Melbourne commercial property loans require a 20-35% deposit. Prime CBD properties with strong tenants may qualify for 80-85% LVR (15-20% deposit), while suburban properties typically need 30-35%.
What are current commercial property loan rates in Melbourne?
Melbourne commercial property loan rates range from 5.59% to 10.25% depending on the lender and property type. Major banks may offer 5.59-7.45% for prime CBD assets, while private lenders might charge 7.45-10.25% for standard commercial properties.
Can I buy my business premises in Melbourne with an SMSF?
Yes, SMSFs can purchase commercial property in Melbourne for business use. You’ll need a 30% deposit, and the property must be leased at market rates to your business. Popular SMSF commercial areas include Box Hill, Clayton, and suburban retail strips. Interest rates start from 7.45% p.a.
How long does commercial loan approval take in Melbourne?
Melbourne commercial loan approvals typically take about 7 – 28 business days. Major banks can average 2 – 4 weeks, while second-tier lenders 1 – 2 weeks. In urgent situations we have lenders that can provide approvals within 48-72 hours, but be prepared to pay a premium interest rate. We see auction purchases often using our bridging finance for speed.
Which Melbourne suburbs offer the best commercial property investment returns?
Some of Melbournes currently high-performing commercial property suburbs include Box Hill (Suburban Rail Loop impact), Cremorne (tech hub growth), West Melbourne (rezoning opportunities), as well as Altona/Truganina (logistics demand). Fringe CBD areas like Collingwood and Fitzroy can offer 5-7% yields with strong capital growth. Long term growth is always driven by location and property type demand.
What's the minimum loan amount for Melbourne commercial property?
Most commercial property loans in Melbourne start from $500,000. Renovations loans are typically from $100,000. Our lending panel can service loan values all the way up to $100m+. Speak to our commercial property loan broker team about your specific needs.
How is serviceability calculated for Melbourne commercial loans?
Melbourne commercial lenders typically use 70-80% of rental income for serviceability calculations, plus your business or personal income. They’ll often apply a 2-3% buffer above the actual rate and assess at Principal & Interest repayments even if you’re seeking interest-only terms.
Can I get a commercial loan for a Melbourne warehouse conversion?
Yes, we are seeing warehouse conversions be popular in Melbourne’s inner north (Collingwood, Fitzroy, Brunswick). Our lenders will finance based on current use initially, then you can refinance post-conversion. Creative office conversions in these areas are can currently see a 30-40% value uplift.
What costs are involved in Melbourne commercial property purchases?
Beyond the your deposit, you’ll also need to budget for stamp duty, legal fees ($3,000-$8,000), building inspection ($2,000-$5,000), loan establishment fees (0.5-1%), and valuation ($1,500-$3,500). Your total costs can typically add 7-8% to the purchase price.
Are commercial property loans tax deductible in Melbourne?
Yes, one of the primary benefits to business owner occupiers is that interest on commercial property loans may be tax deductible. Owner-occupiers may also claim depreciation, repairs, and other expenses. Always consult your accountant for specific tax considerations.
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