Industrial Property Loan Australia for Warehouses & Factories

Most bank and commercial lenders generally assess industrial property loans around 60% to 70% LVR for standard warehouse, factory and logistics assets. Strong metro industrial properties with good access, functional improvements, quality tenants and longer leases may sit at the upper end of the range. Vacant, highly specialised, regional or older industrial assets may require a lower LVR or specialist lender.

Most warehouse or factory purchases require a deposit of around 30% to 40% of the purchase price, plus acquisition costs. The required contribution depends on the lender, valuation, lease profile, property location, borrower strength and whether additional security is offered.

Industrial assets can attract strong lender appetite because warehouses, factories and logistics sites often have practical business use and broad tenant demand. However, finance is not automatic. Lenders still assess location, zoning, site access, building functionality, lease strength, valuation and borrower serviceability.

Yes, vacant warehouses can be financed, but lenders usually apply more conservative assessment. A lower LVR, stronger borrower cash flow, evidence of demand, a lease-up plan or additional security may be required because there is no confirmed rental income at settlement.

A strong lease can improve lender confidence because it supports rental income and serviceability. Lenders review the tenant, rent, lease term, expiry dates, options, incentives and how easily the property could be re-let if the tenant leaves.

Yes, business owners can seek finance to buy a factory, warehouse or industrial unit for their own operations. In this case, lenders usually focus on business trading history, financial statements, BAS, bank statements, cash flow, credit conduct and whether the property suits the business use.

Yes, an SMSF may be able to buy eligible industrial property through a compliant borrowing structure. Commercial property can sometimes be leased to a related business at market rent if the arrangement follows SMSF rules. You should obtain qualified financial, legal and tax advice before using an SMSF to buy industrial property.

Typical documents include the contract of sale, lease agreements, rental schedule, borrower financials, tax returns, BAS, bank statements, entity documents, property details, zoning information and evidence of deposit or equity. Owner-occupied, SMSF, trust and low doc files may require different supporting documents.