Industrial Property Finance in Australia

Most major banks offer 65% to 70% LVR on standard metropolitan industrial property, and some non-bank lenders will go to 75% for well-tenanted assets. Regional, older, or single-purpose industrial properties typically attract lower LVR of 50% to 60%. The specific LVR you're offered depends on the building specification, location, lease profile, and your overall financial position. For a full breakdown of how LVR limits work, see our guide to commercial property loan LVR.

Yes, most lenders require at least a Phase 1 Environmental Site Assessment before approving finance on industrial property. This is a desktop and visual investigation into the property's history to identify potential contamination from previous uses such as fuel storage, chemical handling, or manufacturing. If the Phase 1 flags contamination risk, the lender will typically require a Phase 2 assessment involving soil and groundwater testing, which adds cost and time to the approval process.

Yes, but on more restrictive terms than tenanted industrial property. Most major banks will reduce LVR to 50% to 60% for vacant industrial assets, and some won't lend on them at all. You'll need to demonstrate that you can service the loan entirely from personal or business income without any rental contribution, and present a clear plan for leasing or owner-occupation. Non-bank lenders tend to be more flexible with vacant industrial property where the borrower's financials are strong. Our guide to vacant commercial property finance covers the full picture.

A triple net lease strengthens your lending position because the tenant pays all outgoings, including rates, insurance, and maintenance, on top of the base rent. This means the gross and net rental income are close to identical, which simplifies the lender's serviceability calculation and typically supports a higher borrowing amount. Lenders view triple net leases favourably because they reduce the owner's cost risk and provide more predictable cash flow. Our guide to lease requirements covers the specific clauses lenders look for.

Industrial property loan rates in mid-2026 typically range from 6.05% to 10% depending on the lender type, LVR, and borrower profile. Major banks offer rates from around 6.05% to 7.50% for owner-occupiers with strong financials and low LVR. Non-bank lenders typically price between 7% and 10%. The RBA cash rate sits at 4.35% as of May 2026, and commercial rates build on this base with margins that reflect the property and borrower risk.

Generally, yes. Lenders consider standard warehouses and logistics facilities to be lower risk than factories or manufacturing premises. Warehouses are more easily re-leased or repurposed if the tenant leaves, while factories often have specialised fitouts, heavy machinery, or environmental contamination risk that limits the pool of replacement tenants. A modern warehouse in a metropolitan logistics precinct will typically attract better LVR and pricing than a single-purpose manufacturing facility.

Yes, SMSFs can purchase industrial property, and this is one of the most common commercial property types held within SMSFs. You can even lease the property to your own business at market rent, which is not permitted with residential property in an SMSF. LVR is typically capped at 70% to 80% for SMSF industrial purchases, and the loan must be structured as a limited recourse borrowing arrangement. See our guide to SMSF property loans for the full requirements.

Lenders assess clear span height (minimum 6 to 8 metres for modern logistics), floor loading capacity, the number and type of loading docks, roller door access, hardstand and yard area, power supply capacity, and overall building condition. Modern facilities with high clearance, multiple roller doors, and sprinkler systems are considered the most financeable. Older buildings with low clearance or limited access are harder to finance and may attract lower LVR.