Opportunities for brokers in commercial property finance

Australians have a deep love of residential property. In contrast, commercial property is typically viewed as a niche opportunity dominated by professional and high net worth investors.

But things could be changing, with brokers increasingly facilitating commercial property deals that are helping Australians diversify their investment portfolios and grow their wealth. 

And as interest rates fall and green shoots appear^[1], confidence in commercial property is on the rise. So now may be the time to consider commercial property investment as the market rebounds. 

We’re seeing growth pockets outside major capital cities such as Queensland’s Gold Coast. And in cities across Australia, many businesses are asking staff to spend more time in the office, helping bolster office and nearby retail property values. Brisbane, Perth and Adelaide are experiencing especially strong demand. What’s more, industrial asset growth remains robust across the country.

Benefits of commercial property investment versus residential

Although commercial property has its own set of risks, they can make easier, more lucrative investments compared with residential property, for the following reasons:

• Better yields. Commercial property tends to offer a stronger return on investment, with yields averaging between 5.5% per annum to 7% per annum^[2], depending on the property type and location. In contrast, residential property investments typically yield less than 4%^[3] per annum on average. Furthermore, commercial tenants typically pay some of the outgoings, such as council rates, water and body corporate fees.

   

• Longer leases. Commercial property leases tend to be between three and five years, which may reduce investment risk – although commercial properties can have longer vacancies between tenants. In contrast, residential properties typically have shorter six to 12-month lease terms.

• Tenants motivated to look after the property. Commercial properties are typically used to operate a business, which means the tenants will be motivated to keep the property tidy and in good condition. 

• Diversification. If a client already owns residential property, commercial property can help diversify their portfolio.

Brokers are actively involved in commercial assets

As interest in commercial property grows, we’re seeing brokers negotiate finance for industrial sheds, strip retail with two or three shops, smaller offices, childcare centres and data centres. Small blocks of four or more residential units are also considered a commercial property investment.

To make it easier for brokers to help their clients into these assets, ANZ offers streamlined lending up to $1.5 million for non-complex transactions.

Wayne Gardner, Area Manager, South East QLD, suggests brokers encourage their clients to cast a national net as values and opportunities vary from state to state.

“We recently worked with a broker to help a wealthy Brisbane family acquire a commercial asset in Busselton Western Australia – completely outside of where they’ve invested historically.”

Asset growth in Southeast Queensland is also attracting investors. “Queensland had significant capital growth during COVID across all property asset classes. Industrial is doing extremely well,” Gardner adds.

Gardner also observes that location choice is influenced by local regulations.

“Some states are not as supportive as others for property investment – whether it be residential or commercial,” he says.

Broker benefits of streamlined commercial property lending

ANZ’s simplified application processes can seem too good to be true, explains David Starr (pictured), Senior Business Banking Manager at ANZ.

“As an ex-broker, I was used to my clients being risk-rated for seemingly cutting that corner. Whereas with ANZ, the customer gets both competitive pricing and the ease of a simplified application process.”

Fast finance completion

Streamlined applications get assessed and settled quickly, allowing clients to have shorter finance settlement clauses, according to Starr.

“You’ll see contracts with 30 to 45-day settlements. We’ll get finance done within 21 days, depending on the transaction’s complexity, security and the property they're buying.”

“If the property is leased, then finance can be approved particularly quickly. Generally the client will use a special purpose proprietary limited vehicle to buy the property. We’ll create a loan term to match the length of the lease. And as long as that lease income can cover the interest payments at a rate of 1.5 times, all that’s needed is a property valuation and the property lease document,” explains Starr.

Transparent risk guidance

A broker’s client might want to borrow 80% against a property. Yet if the property is specialised, such as a cold storage facility, service station or a childcare centre, a lower LVR may apply.

“We help brokers understand and discuss risk with their clients. That way, if a client wants to maximise their borrowings, the broker can guide them towards properties that don’t require as much equity,” says Starr.

Refinancing a gym with a fit-for-purpose loan

To demonstrate the ‘win-win’ of streamlined lending for both brokers and customers, Starr gave the example of a gym he helped refinance in the Brisbane suburb of Coorparoo.

“The benefit for the broker was that it was a very simple process to lend up to $1.5 million for a commercial property,” says Starr.

It was up to the broker to negotiate the terms of the loan based on the risk profile, and security the client had, he says.

The client ending up saving 1.10% compared to the competitor facility, which had been established by the referring broker many years ago, says Starr.

“The broker felt as though they were able to provide a time-efficient, competitive solution which saved the client money – which can now be better used within the business, whether it be cash flow or other strategic expenditure,” he says.

The benefit to the broker was the streamlined process and the speed to market, says Starr. Ultimately, it provided the client with market-leading terms which helped the broker build credibility with the client as a trusted advisor and finance broker, he says.

Using commercial property as a bridge into commercial broking

In ANZ’s experience, residential property brokers can easily apply their residential experience to commercial property.

“If you hit the right LVR and you’ve got the contribution, then our streamlined processes can make it quite easy for a residential broker to dip their feet in the commercial property pond,” explains Starr.

To land opportunities, Gardner suggests brokers look for trigger events.

“From what we see, a growing business may want commercial property to expand into. Or they want to refinance their existing property to get better terms. Or if they’re making money, the owner may want to diversify into commercial property investment,” says Gardner.

But the opportunities aren’t just with business owners.

“Individual mum and dad investors are feeling wealthier. They’ve got equity from the COVID boom, and they’re able to dabble in an asset class that was probably once out of reach,” Gardner adds.

Starr recommends brokers work their networks, targeting buyers’ agents who specialise in commercial property and commercial real estate agents.

Supporting brokers to move into commercial property

With simplified lending processes ANZ can support brokers with commercial property loans:

• Broker focus. We have dedicated senior business banking managers who only deal with brokers. “Because I have a pure focus on brokers, I can get the deal done faster,” explains Starr. “We really want the brokers we work with to write business and succeed – it’s a genuine relationship.” 

• Property specialists. ANZ can tailor property investment solutions to suit each broker’s clients across all commercial property segments. 

• National footprint. ANZ has a well-resourced national network of property specialists and economists across our credit risk and technical services functions. 

• National insights. The large volume of transactions that we fund across Australia provide us with comprehensive insights – such as where we’re seeing hotspots. Our bankers share these insights with the brokers they work with and through broker education, including webinars and market insights reports. 

Key takeaway

To get the best possible client outcome, Gardner recommends that brokers engage ANZ early in the process.

“No transaction is the same and we can guide brokers through the process. We offer bespoke products, we’re competitive and we want to be doing deals.”

How ANZ helps

ANZ has the tools, expertise and appetite to help brokers help their clients with commercial property investments. Reach out to your ANZ Broker Manager or contact us here.

Disclaimer

This is general information. ANZ is not giving advice or recommendations, and we haven’t taken into account your customers’ clients’ needs, financial circumstances or objectives. You and your clients should carefully consider which ANZ products are appropriate for them and should seek appropriate independent advice (which may include property, legal, financial, taxation and accounting advice) before making any decisions, investing, or acting on it. Terms and conditions, fees and charges, and credit approval and eligibility criteria apply to ANZ products.

¹ Property Australia, Signs of stabilisation emerge after sharp capital correction, 21 May 2025, accessed 6 August 2025. 

² Cotality data

³ JLL data