Yes — and following the 2026 SMSF residential borrowing ban, industrial property has emerged as one of the most strategically compelling SMSF asset classes in Australia. SMSF borrowing for industrial property is not affected by the ban, which applies only to new LRBAs for residential property.
Why SMSF Industrial Property Is Now a Priority Strategy
Industrial property offers a combination of characteristics that make it particularly attractive for SMSF investors in the post-ban environment:
- Borrowing still available — new SMSF LRBAs for industrial property remain fully permitted
- Strong rental yields — industrial typically delivers 5-7% gross yields in metropolitan markets
- Long lease terms — industrial tenants commonly sign 5-10 year leases with fixed annual rent increases
- Net leases — tenants typically pay all outgoings including council rates, insurance and maintenance
- E-commerce tailwind — demand for last-mile logistics and warehouse space continues to grow strongly
- Supply constraints — industrial land is scarce in inner and middle-ring Melbourne and Sydney
Types of Industrial Property Suitable for SMSF Investment
- Small-format industrial units (200-500sqm) — ideal entry-level SMSF industrial investment
- Warehouses with office component
- Last-mile logistics facilities
- Cold storage and food manufacturing facilities
- Self-storage centres
- Trade supply and showroom facilities
Industrial Property vs Residential for SMSF Investors in 2026
| Factor | Industrial (SMSF) | Residential (SMSF) |
|---|---|---|
| SMSF borrowing available? | Yes | No (new LRBAs banned) |
| Typical gross yield | 5-7% | 2.5-4.5% |
| Lease length | 5-10 years | 12 months |
| Outgoings paid by tenant? | Usually yes | No |
Frequently Asked Questions
Is industrial property considered commercial for SMSF purposes?
Yes. Industrial property is classified as commercial property for SMSF purposes and is not subject to the residential borrowing ban.
Can my SMSF borrow to buy a warehouse?
Yes. SMSF LRBAs for industrial property including warehouses remain fully available and are not affected by the residential ban.
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