What does a commercial buyers agent do? +
A commercial buyers agent works for the buyer of commercial real estate. They find the property and negotiate the price, after checking the lease, the tenant and the building. Then they work with your solicitor through to settlement. Most of the checking goes into the lease, because the lease drives the yield a buyer will pay. In Victoria you'll often hear the role called a buyers advocate.
Is a commercial property buyers agent worth it? +
It's worth it when it changes the price you pay or keeps you out of a property with a bad lease. On a property earning $100,000 a year in net rent, buying at a 6.5% yield instead of 6.0% means paying $128,205 less. The lease moves much of that yield. It's less useful if you already buy commercial property often and read leases yourself.
How is commercial property valued? +
Mostly on its income. Take the rent and subtract any outgoings the owner still pays. Then divide by the yield buyers expect for that kind of property in that area, also called the cap rate. $100,000 of net rent at a 6% yield is worth about $1.67 million. Recent sales show where yields sit now.
Is commercial property a good investment? +
It can be, mainly for income. Commercial properties at CBRE's portfolio auctions sold at average yields between 5.35% and 5.76% from June to September 2026. Australian homes had a gross rental yield of 3.79% at 31 August 2026 on Cotality's figures. Leases often run for years, and a tenant on a net lease usually pays most of the outgoings. The trade-offs are longer vacancies, lower bank lending limits and sector cycles that move separately from housing.
Can my SMSF buy commercial property in 2026? +
Yes. An SMSF can buy commercial property with cash. It can also borrow through a limited recourse borrowing arrangement if the property is business real property. That means land and buildings used wholly and exclusively in a business. Since 10 August 2026 a new SMSF borrowing arrangement can only buy business real property, so it can't fund a rental house or unit. The property has to stay business real property for the whole life of the loan. Talk to your SMSF adviser first.
Can my SMSF buy my business premises and lease them back? +
Yes, if the premises are business real property. A fund can buy business real property from a related party, such as a member or the member's business, at market value. It can then lease the property to that business on arm's length terms that reflect market value. The property has to keep being used wholly and exclusively in a business. Your SMSF accountant or adviser should set this up before anything is signed.
Do you pay GST on commercial property? +
Often, yes. A sale of commercial property by a GST-registered seller is taxable, so the price carries GST. The contract says whether it sits on top of the price or inside it. If you're registered for GST and use the property in your GST-registered enterprise, you can generally claim that GST back. The exception is a purchase where the seller used the margin scheme. A tenanted property can also be sold GST-free as a going concern. For that, the buyer must be registered for GST and both parties must agree in writing, among other conditions. If you're not registered for GST by settlement, you can't claim it back or use the going concern exemption, so the GST becomes a real cost. Have your accountant confirm the treatment before you exchange.
How much deposit do I need to buy commercial property? +
More than for a home. Commonwealth Bank's lease doc loan lends up to 65% of the value. Westpac's lease doc lending goes to 70% for loans up to $3 million and 65% above that. Both are for companies or trusts set up to hold the property. The percentage is measured against the bank's valuation. On those limits you fund 30% to 35% yourself, plus stamp duty, costs and any GST payable at settlement. Lenders also check that the rent covers the interest with room to spare. A short lease or a weak tenant can cut what you can borrow.
Can I claim depreciation on commercial property? +
Generally, yes. Most residential investors who bought after 9 May 2017 can't claim depreciation on second-hand plant and equipment. That rule is aimed at residential accommodation, and the ATO says it doesn't apply when a property is let for commercial purposes. The building's original construction cost is written off as capital works, usually at 2.5% a year. The 4% rate applies only to certain uses, such as industrial activities. The land can't be written off. A quantity surveyor's depreciation schedule and your accountant will confirm what applies to your property.
Data sources: residential yields are Cotality's Home Value Index at 31 August 2026. Commercial auction yields are CBRE Private Wealth portfolio auction averages for June, August and September 2026, as reported in the trade press. Neighbourhood centre yields are Stonebridge's FY26 national update, and childcare yields are from CBRE's Early Education Report, March 2026. Industrial vacancy is JLL's figure for the five mainland capitals in the June quarter of 2026, and office vacancy is the Property Council's Office Market Report, July 2026. Lending limits are from the Commonwealth Bank and Westpac product pages, and tax and SMSF rules from the ATO and State Revenue Office Victoria, all read on 29 September 2026. The yield-to-price figures are our own arithmetic.
This page is general information only and does not take your personal circumstances into account. Speak to your accountant, financial adviser and solicitor before buying commercial property, particularly through an SMSF.
