Commercial Property Loans

What is a commercial property loan?

A commercial property loan is a mortgage specifically used to purchase, refinance, or develop commercial real estate. Unlike a general business loan, it is secured against the commercial property being purchased or refinanced. Eligible property types may include:

• Office Properties:

  Loans for office buildings used by professional services, corporate tenants, or mixed-use occupiers.

• Industrial Properties:

  Warehouses, factories, and logistics facilities used for storage, manufacturing, or distribution.

• Retail Properties:

  Shops, cafés, and retail centres generating rental income from trading businesses.

• Development Sites:

  Vacant or underutilised land intended for commercial or mixed-use development projects.

• Specialist Assets:

  Hotels, motels, medical centres, vineyards, and other niche commercial properties.

Who it's for

Individuals or entities looking to purchase or refinance retail, office, industrial, or mixed-use property.

Yield-focused investors seeking stable rental cash flow and a long-term hold.

Owner-occupiers aiming to enhance business stability and capital allocation through owning their premises.

What lenders look at

• Location:

  Pricing can differ by property type — retail, industrial, office, or mixed-use — and by micro-location fundamentals.

• Lease quality:

  Remaining lease term, weighted average lease term (WALT), tenant covenant strength, rent review clauses, and vacancy risk.

• Valuation:

  An independent registered valuation may be required. A professional valuer assesses market value to support lending and pricing decisions.

• LVR:

  Commercial LVRs are generally lower than residential. Many lenders expect 30–35% equity, meaning maximum lending is often around 65–70% of the property value, subject to the asset type, lease strength, and borrower profile.

• %NBS:

  The earthquake strength of the building is a critical factor, especially in New Zealand. Lenders generally prefer a rating of at least 67% of the New Building Standard (%NBS).