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Can SMSFs Buy Warehouses in Australia?

June 24, 2026

Yes — and warehouses have emerged as one of the most sought-after SMSF investment assets following the 2026 residential borrowing ban. Warehouses are classified as industrial commercial property, meaning SMSF borrowing for warehouse purchases is fully available and completely unaffected by the ban.

Why Warehouses Are Now One of the Best SMSF Investments

The combination of the residential borrowing ban, strong industrial market fundamentals and the e-commerce-driven demand surge has made warehouses a standout SMSF strategy in 2026:

  • SMSF LRBAs still available for warehouse purchases
  • Gross yields of 5-7% in metropolitan Melbourne and Sydney
  • Long lease terms — typically 5-10 years with annual CPI or fixed increases
  • Net leases — tenants pay council rates, insurance and maintenance
  • E-commerce tailwind driving last-mile logistics demand
  • Scarce industrial land in inner and middle-ring suburbs
  • Strong tenant covenant quality (logistics, trade, manufacturing)

What Size Warehouse Should an SMSF Buy?

For SMSF investors, the most practical entry-level warehouse formats are:

  • Small-format strata industrial units (150-400sqm) — entry price $400,000-$900,000 in Melbourne outer suburbs
  • Standalone warehouses with hardstand (500-1,000sqm) — typically $800,000-$2,000,000
  • Warehouse with office component — adds versatility and wider tenant appeal

Best Melbourne Suburbs for SMSF Warehouse Investment

Based on yield, vacancy rates and tenant demand, the strongest Melbourne industrial precincts for SMSF investors include: Campbellfield, Thomastown, Dandenong South, Laverton North, Sunshine West, Bayswater and Knoxfield. These offer the combination of accessibility, established tenant bases and reasonable entry prices for SMSF-scale investment.

Frequently Asked Questions

Is a warehouse considered commercial property for SMSF purposes?

Yes. Warehouses are classified as industrial commercial property. SMSF LRBAs for warehouse purchases are fully available.

Can I lease a warehouse to my own business through my SMSF?

Yes — this is one of the most powerful SMSF strategies available. Your SMSF can purchase a warehouse and lease it to your own business at market rent.

Access Off-Market SMSF Warehouse Opportunities

The Collings Property Platform gives you access to off-market warehouse and industrial opportunities, portfolio tracking, investment tools, and property insights powered by GeeVee AI. Join free today. collings.com.au/portal

Find your next property with Collings

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