Commercial property has become the primary SMSF property strategy in 2026 after the residential borrowing ban. This calculator covers everything SMSF trustees need to assess a commercial property opportunity — yield, deposit, LRBA borrowing capacity, cash flow, and 10-year wealth projection.
SMSF Commercial Property — Key Numbers at a Glance
| Commercial Sector | Typical Purchase Price Range | Gross Yield Range | Typical LRBA Deposit (30%) | Lease Length |
|---|---|---|---|---|
| Industrial / Warehouse | $600k–$3m | 5.5–7.5% | $180k–$900k | 3–10 years |
| Office (strata) | $400k–$2m | 5.0–7.0% | $120k–$600k | 2–5 years |
| Retail (high street) | $500k–$2m | 4.5–6.5% | $150k–$600k | 3–7 years |
| Medical / Healthcare | $800k–$5m | 5.0–7.0% | $240k–$1.5m | 5–15 years |
| Childcare | $2m–$8m | 5.5–6.5% | $600k–$2.4m | 10–20 years |
SMSF Commercial Property LRBA Borrowing Capacity
Most SMSF lenders will lend up to 65–70% of the commercial property value under an LRBA. Unlike residential property, commercial LRBAs are assessed primarily on the property’s rental income and lease quality — not just the fund’s member balance. A strong lease to a creditworthy tenant significantly improves borrowing capacity.
Frequently Asked Questions
Can my SMSF buy commercial property and lease it back to my business?
Yes — this is one of the most powerful SMSF strategies available and remains fully permitted after the residential borrowing ban. Your SMSF can purchase your business premises and lease it to your business at arm’s length market rent. The rent payments go into your super fund, building retirement wealth while your business pays rent that would otherwise go to a third-party landlord.
What is the minimum SMSF balance needed for commercial property?
As a general guide, a minimum SMSF balance of $400,000–$500,000 is recommended to purchase a commercial property via LRBA, allowing for a 30% deposit plus transaction costs while retaining a cash buffer. Smaller funds should consider commercial property trusts or REITs instead.
Are SMSF commercial property loans harder to get than residential?
Commercial LRBA loans have stricter lending criteria than residential LRBAs — including lower LVRs (65–70% vs 80% for residential), shorter loan terms, and stronger lease requirements. However, with the residential ban in place, many SMSF lenders are actively competing for commercial LRBA business in 2026.
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