Office Property Finance in Australia

Most major banks offer 65% to 70% LVR on well-leased metropolitan office property, with some non-bank lenders going up to 75%. The exact LVR depends on building grade, tenant quality, WALE, and location. A-grade CBD office with a long lease to a national tenant will sit at the top of the range, while a B-grade suburban office with short leases could be capped at 60% or lower. For more detail, see our commercial property LVR guide.

Lenders use the Property Council of Australia grading system, which classifies office buildings from Premium down to D-grade based on age, specification, services, and location. A-grade and Premium buildings attract the strongest lending terms because they hold tenants and value more reliably over time. B-grade and C-grade buildings can still be financed, but expect lower LVR, higher rates, and more scrutiny of the lease profile.

Yes, but lending terms are typically more conservative than for CBD office. Suburban office vacancy rates are higher nationally, sitting around 18.5% as at January 2026, which makes lenders cautious. You'll generally need a stronger lease profile and a lower LVR to get approved. For guidance on how location affects your borrowing limit, see our borrowing capacity guide.

With the RBA cash rate at 4.35% as at May 2026, commercial office property loan rates from major banks typically start around 6.50% to 7.50% for strong deals. Non-bank lenders range from 7.50% to 10% or higher depending on LVR, property quality, and borrower profile. Your rate is priced on a deal-by-deal basis, so the property and lease matter as much as your financials. See our commercial property interest rates guide for current ranges.

Lenders are factoring hybrid and flexible work arrangements into their assessment of office property in 2026. The main concern is subletting risk and whether existing tenants will renew at current rents when leases expire. If your office building has long leases with strong tenants, hybrid work trends are less of a factor. Short leases on lower-grade buildings face more scrutiny.

Owner-occupied office property can be slightly easier to finance because the lender doesn't rely on a third-party tenant for income. Your business occupies the premises and services the loan directly. That said, the lender will assess your business financials closely. For investment office, the lease profile drives everything. See our guide to commercial investment property loans for more on this.

Multi-tenant office buildings are assessed on a blended basis, looking at each tenant's covenant strength, lease term, and the overall WALE across all tenancies. Lenders generally view well-diversified multi-tenant buildings positively because the risk isn't concentrated in one occupier. However, if several leases expire around the same time, that clustering of expiry risk can reduce the LVR a lender will offer. See our lease requirements guide for how WALE is calculated.

Yes, strata-titled office suites are a common entry point for smaller investors and owner-occupiers. Lenders treat them as standard commercial security in most cases, though some apply slightly lower LVR limits compared to freehold office buildings. Our strata title commercial property guide covers the specific lending criteria and body corporate considerations.