Commercial Finance
Can You Finance A Vacant Commercial Property?
5 min read- Finance Guide
- Updated 2026
Quick answer
Typical lender range
50% 70%
Depending on the property and scenario
- Vacant property can be funded Yes
- Common deposit range 30% - 50%
- Fully leased property Usually easier
- Main challenge No income in place
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1300 421 044
Vacant commercial property finance is usually assessed using two main factors
The quality and marketability of the property
Lenders want to know whether the property is in a good location, suits normal commercial demand and could be leased or sold without major difficulty.
PROPERTY-BASED LIMIT
The borrower's ability to service the debt without current rent
Because the property is vacant, lenders often focus heavily on income, cash flow, liquidity, financial history and the borrower's overall strength.
Business-based limitTypical lender view of vacant commercial property
Vacancy generally means more caution, lower leverage and tighter assessment
-
Well located standard property with strong borrower Up to 70%
-
Vacant investment property with ordinary leasing risk 55% - 65%
-
Specialised or harder to lease property Around 50% - 60%
For example, if a vacant commercial property is worth $1,000,000 and a lender is comfortable at a 60% LVR, the maximum loan may be around $600,000 — meaning the borrower may need to contribute $400,000 plus costs.
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What Lenders Review About The Borrower
When the property is vacant, lenders often pay even closer attention to the borrower's financial position. They may review:
Business financial
statements- Cash reserves and
liquidity
- Tax returns and
trading history
- Existing debts and
repayment commitments
- Alternative income or
external security
A stronger borrower may have more options, even where the property is vacant at the time of purchase.
What Lenders Review About The Property
Because there is no current lease, the property itself becomes very important. Key factors can include:
Location and
local demand- Property type
and market appeal
- How easily the
property could be leased or sold
Well located standard assets are generally easier to finance than niche or difficult to lease properties.
How Vacant Commercial Property Finance Is Usually Structured
Loan structures for vacant property vary depending on the security and the lender.
Common scenarios include:
Standard Purchase
Lower LVR
Used when the property is vacant and the lender relies mainly on borrower strength
Security Supported
Extra Equity
Additional property security may improve the structure
Future Leasing Plan
Improved Positioning
A clear leasing strategy can strengthen the overall application
Each lender will have its own policy around vacancy risk, acceptable property types and minimum deposit requirements.
Common problems borrowers face
Vacant commercial property can be financeable, but borrowers often run into issues with risk, deposit size and lender policy.
No Rental Income
Without a tenant in place, lenders may see more uncertainty around serviceability and exit risk.
Possible solutions include:
-
Showing strong
business or personal income
-
Offering extra
security or equity
-
Presenting a
realistic leasing plan
Deposit Too Small
Vacant property often requires a larger contribution than a comparable leased asset.
A larger deposit may be needed because lenders can take a more conservative view on LVR when the property is empty.
Hard To Lease Property
If the property is in a weaker location or is specialised, lenders may worry that it could remain vacant for an extended period.
Good quality commercial stock in proven areas is usually more acceptable to lenders.
Applying With The Wrong Lender
Not all lenders treat vacancy risk the same way, so policy fit matters.
Using lenders familiar with commercial property scenarios can improve approval chances.
Steps to get Finance for a Vacant Commercial Property
Step
01
Confirm the property type, location and why it is currently vacant.
Step
02
Work out how much deposit or equity you can contribute to the purchase.
Step
03
Prepare income evidence, financial statements and supporting documents.
Step
04
Explain your intended use, leasing plan or future occupancy strategy.
Step
05
Submit the application to lenders that are comfortable with vacancy risk.
Step
06
Once approved, complete valuation, formal approval and settlement.
Speak with a Development Finance Specialist
Vacant commercial property finance can vary significantly depending on the property type, location, vacancy risk, and the borrower's financial strength.
A specialist can review your scenario and help determine which lenders may be able to fund it.
Speak with a finance specialist about your vacant property scenario.
Submit the short form below and a finance specialist will review your enquiry and discuss possible funding options.
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