Warehouses and industrial properties have become the standout SMSF investment opportunity of 2026. With the proposed ban on residential LRBA borrowing, SMSF investors are pivoting to commercial assets — and industrial property leads the way. Strong yields, long leases, low vacancy rates, and full LRBA borrowing availability make warehouses one of the most compelling SMSF asset classes available.
Why Warehouses Work Well for SMSFs in 2026
- Gross yields of 5–7% compared to 2.5–4% for residential in Melbourne and Sydney
- Long lease terms (3–10 years) provide income certainty for retirement planning
- Tenants typically pay outgoings (rates, insurance, maintenance) — reducing the SMSF’s cost burden
- LRBA borrowing still available — SMSFs can still leverage to acquire industrial assets
- Business real property exemption applies — SMSF members who operate businesses can lease the warehouse back from their fund
- National vacancy rates in industrial property remain near historic lows, supporting capital values
How to Buy a Warehouse Through an SMSF
The process follows the standard SMSF commercial property acquisition pathway:
- Confirm the SMSF has sufficient liquidity for a deposit (typically 30–40% of purchase price) plus transaction costs
- Identify a suitable warehouse through on-market listings or off-market channels
- Obtain SMSF commercial property finance pre-approval from an SMSF specialist lender
- Establish a bare trust (holding trust) to hold the property during the loan period
- Complete due diligence — lease review, building inspection, zoning confirmation, environmental assessment
- Exchange contracts and settle — property held in bare trust until loan repaid
- Once loan discharged, transfer title directly to the SMSF
SMSF Warehouse Investment — Key Numbers
| Metric | Typical Range |
|---|---|
| Purchase price range suitable for SMSFs | $500,000 — $2,500,000 |
| Gross rental yield | 5.0% — 7.0% |
| Typical lease term | 3 — 10 years |
| LRBA LVR (commercial) | 60% — 70% |
| Outgoings paid by tenant | Typically yes (net lease) |
| Depreciation available | Yes — building, fit-out, plant and equipment |
Finding Off-Market Warehouse Opportunities for SMSFs
The best warehouse opportunities rarely reach the open market — they are transacted off-market between investors. The Collings Off-Market Property Portal gives SMSF investors access to pre-market and off-market industrial property opportunities in Melbourne, Sydney and beyond.
Whether you’re buying your first investment property, building a portfolio, or exploring SMSF property investment, the Collings Property Platform gives you access to off-market opportunities, portfolio tracking, investment tools, and property insights powered by GeeVee AI. Join free today and start building your property future. collings.com.au/portal
Frequently Asked Questions
Can an SMSF still borrow to buy a warehouse in 2026?
Yes. The residential borrowing ban does not apply to industrial or commercial property. SMSF LRBAs for warehouses remain fully available in 2026.
Can an SMSF lease a warehouse to a related business?
Yes. Under the business real property exemption, an SMSF can lease a warehouse to a business owned by a fund member, provided the lease is at market rent on arm’s length terms.
What size warehouse suits an SMSF?
Most SMSFs target warehouses in the $500,000 to $2,500,000 price range. Smaller strata-titled industrial units in established suburbs are particularly accessible for SMSFs with balances of $300,000 or more.
Find your next property with Collings
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