Industrial and Warehouse Loans: Sydney
Sydney’s industrial market is the strongest commercial segment in Australia right now. Vacancy near historic lows. Sustained rental growth across Western Sydney, South Sydney and the outer metro corridors. And a wave of owner-occupiers who’ve been leasing for years finally running the numbers and buying. The economics of ownership versus leasing in Sydney’s industrial market have shifted decisively.
We arrange industrial and warehouse finance for Sydney owner-occupiers and investors, strata industrial units, freehold warehouses, logistics facilities. Bank and non-bank lenders. 20+ years of commercial finance experience. No broker fee in most cases. Call Jay on 0425 228 882.
What We Finance
Owner-Occupied Industrial Premises
Buying the warehouse or industrial unit your business occupies eliminates rent escalation risk, builds equity in an appreciating asset class, and gives you control over your tenancy. For businesses with significant fit-out or infrastructure investment, that security matters. Serviceability is assessed partly on business cash flow rather than just rental yield, which often produces a better LVR than a pure investment assessment. We know which lenders specifically favour owner-occupier industrial applications.
Industrial Investment Property
Individual strata units, freehold industrial sites, multi-unit industrial estates. Assessed on lease quality, tenant covenant and location. Well-leased Sydney industrial is regarded by most lenders as lower risk than retail or office. LVRs of 70-75% are achievable for quality assets with strong leases.
Logistics and Last-Mile Facilities
Large-format logistics and last-mile distribution facilities are a growing asset class in Sydney’s outer metro. These assets often require lenders with specific capability in larger commercial transactions and an understanding of logistics tenants and lease structures. We work with commercial lenders active in this segment.
Strata Industrial: Small Format
The small-to-medium strata factories, workshops and storage units across Western and South Sydney are the most accessible entry point into commercial property for business owners and investors. Finance is widely available. Some lenders treat well-located strata industrial almost as favourably as residential investment. LVRs of 70-75% are achievable in Sydney’s established industrial precincts.
Key Sydney Industrial Markets
Western Sydney, Parramatta, Blacktown, Penrith, Rouse Hill, Wetherill Park, Smithfield, Villawood, is the largest and most liquid industrial market in the country. South Sydney, Alexandria, Botany, Mascot, Rosebery, Banksmeadow, is premium industrial constrained by limited new supply. The outer South West corridor, Liverpool, Campbelltown, Smeaton Grange, Ingleburn, offers growth potential as infrastructure investment drives demand into these markets. We arrange industrial finance across all of them.
SMSF Industrial Property
Industrial premises are well-suited to SMSF commercial property acquisition. The asset type is accepted by most SMSF commercial lenders. Rents are established by commercial lease rather than short-stay income. And the ability to have your business pay rent to your own super fund, at 15% tax on that income rather than your marginal rate, is a straightforward and highly effective structure. We arrange SMSF industrial property loans regularly. See the SMSF Commercial Property page.
How Industrial Loans Differ from Residential
Shorter maximum terms (15-20 years vs. 30 years residential). Higher interest rates (reflecting commercial risk premium). Higher minimum deposits (25-30% vs. 20% residential). Substantially more documentation: commercial valuations from approved valuers, two to three years of business or investment financials, and all existing lease documents with schedules. The trade-off is the investment fundamentals, strong yield, low vacancy, sustained capital growth in Sydney’s industrial market.
Common Questions
What LVR is available for industrial property in Sydney?
Well-located strata industrial in established Sydney precincts: 70-75% with the right lender. Owner-occupied with strong business serviceability: up to 75-80% in some cases. Large-format or non-standard assets may attract lower LVRs. We model the realistic position for your specific property before you go to contract.
Can I use residential equity to help fund an industrial purchase?
Yes. Cross-collateralisation, using your home as additional security, is a common approach where the commercial property alone doesn’t meet LVR requirements. We explain the implications clearly and structure cross-collateralised deals carefully.
Do you arrange industrial finance for first-time commercial investors?
Yes. Strata industrial is a common entry point for experienced residential investors making their first commercial purchase. We guide first-time commercial borrowers through the differences from residential lending and identify the most appropriate lenders for your situation.
Call Jay, 0425 228 882
YML Finance | ACL 398415 | MFAA Member | Sydney Industrial and Warehouse Finance
General information only. Not credit, tax or legal advice. Acctpro Finance Pty Ltd ACL 398415. Commission received from lenders in most cases, see our Fees and Remuneration page.