Yes — and this is now one of the most important strategic opportunities for SMSF investors following the 2026 residential borrowing ban. While new SMSF LRBAs for residential property are prohibited, SMSF borrowing for commercial property is not affected by the ban. This has dramatically shifted the SMSF investment landscape overnight.

Why Commercial Property Has Become the Most Attractive SMSF Strategy in 2026

The residential borrowing ban has created a major structural shift. SMSF investors who previously used LRBAs to build residential portfolios are now pivoting to commercial property — where leverage remains fully available. Key advantages of SMSF commercial property in 2026 include:

• LRBAs still available for commercial property purchases
• Higher gross rental yields — typically 5-8% compared to 2.5-4.5% residential
• Longer lease terms — typically 3-10 years vs 12 months residential
• Tenant pays outgoings (council rates, insurance, maintenance) — net leases common
• Business premises strategy — SMSF members can lease their own business premises to their SMSF
• Lower vacancy risk with long-term commercial tenants

What Types of Commercial Property Can an SMSF Buy?

• Warehouses and industrial units
• Office suites and office buildings
• Retail shops and retail strips
• Medical centres and consulting suites
• Childcare centres
• Petrol stations and car wash facilities
• Self-storage facilities
• Mixed-use commercial and retail properties

The Business Premises Strategy — Still One of the Best SMSF Options

One of the most powerful and unique SMSF commercial property strategies remains fully available: purchasing your business premises through your SMSF and leasing it back to your own business at market rent. This strategy allows business owners to: pay rent to their own SMSF (tax-advantaged environment), build commercial property wealth inside a low-tax structure, and own their business premises outright at retirement.

Frequently Asked Questions

Does the residential borrowing ban affect SMSF commercial property loans?

No. The ban applies specifically to new SMSF LRBAs for residential property. Commercial property borrowing is not affected.

Can my SMSF borrow to buy a warehouse?

Yes. Warehouses and other commercial properties are not subject to the residential borrowing ban. SMSF LRBAs for commercial property remain fully available.

Can I buy my business premises through my SMSF?

Yes — this is one of the most powerful SMSF strategies available and is not affected by the residential borrowing ban.

Access Off-Market SMSF Commercial Property Opportunities

Whether you are buying your first SMSF commercial property or pivoting your strategy after the residential ban, the Collings Property Platform gives you access to off-market commercial opportunities, portfolio tracking, investment tools, and property insights powered by GeeVee AI. Join free today and start building your SMSF commercial property strategy. collings.com.au/portal