Can I get a private loan on vacant commercial property?

Yes. Private lenders assess vacant commercial property on its security value and the borrower's exit strategy rather than rental income serviceability. The LVR will typically be lower (55–60%) than for a tenanted asset, and the lender will want a clear plan — lease-up and refinance, sale, or development.

What LVR can I expect on commercial property?

Most private lenders offer 55–70% LVR on commercial property. The specific figure depends on the property type, location, tenancy status, and lease quality. A tenanted metropolitan industrial asset with a long lease will sit at the top of the range. A vacant regional retail premises will sit at the bottom.

How long does commercial property finance take to settle?

Through a private lender, expect 1–3 weeks from a complete application to settlement for a standard commercial deal. Complex assets (specialised property, environmental concerns, or multiple-tenancy structures) may take longer due to additional due diligence requirements.

Can I use a commercial property I already own as security for a business loan?

Yes. If you own commercial property with sufficient equity, you can take a first mortgage (if unencumbered) or second mortgage (behind an existing bank loan) to release capital for business purposes. This is one of the most common use cases for private commercial lending.

Commercial Property Finance in Australia: A Guide to Private Lending for Commercial Assets

Nov 6, 2024
1 min read

Updated: 2 days ago

Commercial property finance is loan funding used to acquire, develop, or improve commercial real estate assets: office buildings, retail spaces, warehouses, industrial facilities, and mixed-use developments.

Commercial Property Finance in Australia: A Guide to Private Lending for Commercial Assets

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