SMSF Finance

SMSF Commercial Property Loans Australia

Quick Answer

Can an SMSF buy commercial property and lease it back to your business?

Yes, if the rules are met

An SMSF can use an LRBA to buy eligible commercial property such as an office, warehouse, retail shop or industrial unit. If it qualifies as business real property, the fund may lease it to a related business at market rent under a proper lease. Lenders assess the fund balance, contributions, rental income, property type and LRBA compliance.

  • Typical SMSF LVR 60% to 70%
  • Higher LVR Case by case
  • Typical deposit 30% to 40%
  • Key requirement LRBA structure

SMSF commercial property loans are specialist loans used when a self-managed super fund buys commercial real property through a compliant limited recourse borrowing arrangement. Common assets include offices, warehouses, industrial units and retail premises.

Since 10 August 2026, business real property is the only real property an SMSF can newly borrow to buy. It may also be leased to a related business at market rent, if the arrangement satisfies superannuation, tax and lending rules.

This page covers the commercial SMSF property loan criteria that matter before you apply. For the broader parent category, see SMSF property loans.

  • 60% to 70%

    Typical LVR range for stronger SMSF commercial assets
  • Market rent

    Required for related party leasebacks

For business-owned premises outside super, see buying business premises.

Two factors that shape your SMSF commercial property loan

LRBA and SMSF compliance

The borrowing structure must be compliant before the lender reviews the deal. Lenders usually want the SMSF deed, bare trust, investment strategy, trustee details and advice position to line up with LRBA requirements.

Structure Risk

Commercial property and leaseback position

Lenders review whether the asset is genuine commercial property, how it will be leased, who occupies it, market rent evidence and whether related party dealings are properly documented.

Lease Risk
Typical LVR ranges for SMSF commercial property

These are general guide ranges only. Final terms depend on valuation, fund liquidity, lease file, borrower profile and lender appetite.

  • Up to 50% LVR Specialised or regional asset
  • Up to 60% LVR Weaker lease or low liquidity
  • Up to 65% LVR Standard commercial asset
  • Up to 70% LVR Strong asset and fund position

SMSF commercial lending is not assessed on the property alone. The lender also reviews super fund liquidity, member contributions, lease income, trust structure, cash buffers and whether the deal fits LRBA rules.

Looking for an SMSF commercial property loan?

What lenders look for in an SMSF commercial property loan

SMSF commercial property loans are assessed on the fund, the property, the lease and the compliance structure.

  • Compliant LRBA and bare trust structure
  • Eligible business real property security
  • Fund balance, liquidity and cash buffers
  • Market rent lease or third-party rental income
  • Clear SMSF deed, trustee and advice position

For broader SMSF borrowing rules, see SMSF rules and compliance.

Common SMSF commercial property types financed

Most SMSF commercial lenders prefer standard, marketable assets with clear business use and valuation support.

  • Office suites
  • Retail shops
  • Industrial units
  • Warehouses
  • Business premises

For general commercial lending outside super, see commercial property loans.

Key factors for SMSF commercial property finance

These factors usually determine whether the deal fits a bank, non-bank or specialist SMSF lender.

01

Fund liquidity

The SMSF needs enough cash after settlement for costs, buffers, loan repayments and compliance obligations.

02

LRBA structure

Lenders check that the property is held correctly through the borrowing and bare trust arrangement.

03

Property type

Standard offices, warehouses, retail shops and industrial units are usually easier than specialised assets.

04

Leaseback terms

Related business leases need market rent, written lease terms and arm's length conduct.

05

Strata vs freehold

Office suites are financeable, but lenders may assess body corporate costs, resale depth and building management.

06

Exit position

Lenders consider fund balance, repayment term, member ages, liquidity and refinancing options.

Questions people ask before applying

Can my SMSF buy the premises my business already trades from? Yes, if it is business real property, the fund buys it at market value and the business leases it back under a written lease at market rent. Many owners use this to turn the rent they already pay into contributions to their own super.

How much does the fund need before a lender will look at it? There is no single figure. Lenders look at what is left in the fund after the deposit, duty and costs, the contributions coming in and the rent, and want the loan serviced comfortably from those sources with a cash buffer. A fund that would be left nearly empty after settlement is usually declined, whatever the property is worth.

Why are SMSF commercial rates higher than a normal commercial loan? The loan is limited recourse, so the lender can only recover from the property itself, and fewer lenders offer the product. Pricing sits above standard commercial lending and varies with LVR, property type and the fund position, so the actual rate is only known once a lender has assessed the file.

Can I refinance an existing SMSF commercial loan? Yes. Refinancing is common when the original rate is no longer competitive or the original lender has stopped writing SMSF loans. The fund cannot borrow extra against the property to draw cash out, so the new loan is limited to the balance owing plus refinance costs.

Common problems with SMSF commercial property finance

SMSF commercial deals can fail when the property looks viable but the fund structure, lease or liquidity position is weak.

Leaseback is not arm's length

If the related business lease is not at market rent or properly documented, lenders may treat the file as high risk.

Use a formal lease, market rent evidence and proper payment records.

Fund liquidity is too thin

A strong purchase can still fail if the SMSF has little cash left after deposit, duty, legal costs and loan setup.

Keep clear post-settlement buffers inside the fund.

Asset use is unclear

Mixed-use, residential components or non-business use can create SMSF compliance and lender policy issues.

Confirm business real property status before signing.

LRBA documents are incomplete

Missing bare trust, deed amendments or trustee documents can delay approval and settlement.

Package the SMSF structure before lender submission.

How to get SMSF commercial property finance in 6 steps

Step

01

Confirm fund strategy

Check the SMSF investment strategy, fund deed, trustee structure and whether commercial property suits the members.

Step

02

Test property eligibility

Confirm the asset is commercial business real property and suitable for SMSF borrowing.

Step

03

Review leaseback terms

Prepare the related party or third-party lease, market rent support, outgoings and tenancy details.

Step

04

Package SMSF documents

Gather SMSF deed, bare trust documents, financials, statements, contribution history and member details.

Step

05

Match lender pathway

Compare bank, non-bank and specialist SMSF commercial lender appetite for the property and fund.

Step

06

Submit and manage conditions

Lodge a clean LRBA file, respond to compliance conditions and manage valuation questions early.

How SMSF commercial property finance works in Australia

SMSF commercial property finance allows a self-managed super fund to buy eligible commercial property using a limited recourse borrowing arrangement. The property is usually held through a separate holding trust while the loan is in place, with the SMSF receiving the beneficial interest.

Common commercial assets include offices, warehouses, industrial units, retail shops and business premises. Unlike SMSF residential property, commercial business real property may be leased to a related business, provided the arrangement is at market rent, properly documented and complies with SMSF rules.

The lender reviews both the property and the fund. This includes fund balance, cash buffers, contribution history, rental income, member ages, trustee structure, SMSF deed, bare trust, property valuation and lease quality. A strong asset can still be difficult if the SMSF has limited liquidity or weak documentation.

Because the structure involves superannuation, property law, tax and credit assessment, borrowers should obtain qualified financial, tax and legal advice before proceeding. The ATO business real property guidance explains the commercial property rules at a high level. Property Finance Help provides general information and referral support only.

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Get help with SMSF commercial property finance

Finance specialist at Property Finance Help

SMSF commercial property loans involve lender criteria, LRBA documents, leaseback rules and superannuation compliance. A suitable finance contact can help you understand which lender pathway may fit the deal.

Property Finance Help connects users with finance professionals who understand SMSF and commercial property lending.

Property Finance Help is a lead generation service, not a lender, broker, or financial adviser. All information on this website is general in nature and does not take into account your personal objectives, financial situation, or needs. Consider seeking independent professional advice before making any financial decision.

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