Property Finance •
Commercial Property Finance: A Guide for NZ Business Owners
Everything you need to know about financing commercial property in New Zealand
Introduction
Commercial property finance is a significant investment decision for any business owner. This comprehensive guide explores the different types of commercial properties, financing options available in New Zealand, and key considerations for successful property investment.
Commercial Property Types
Office Buildings
- Location and accessibility
- Building grade and condition
- Tenant quality and lease terms
- Future development potential
Retail Spaces
- Foot traffic and visibility
- Parking availability
- Local demographics
- Competition in the area
Industrial Properties
- Zoning regulations
- Transport links
- Building specifications
- Environmental factors
Mixed-Use Developments
- Income diversity
- Management complexity
- Development regulations
- Market demand mix
Financing Options
Commercial Mortgage
- Long-term financing
- Competitive interest rates
- Up to 75% LVR
- Terms up to 15 years
Best for: Established businesses with strong financials
Development Finance
- Progress payments
- Interest-only during construction
- Flexible drawdown
- Construction cost coverage
Best for: Property developers and major renovations
Bridging Finance
- Short-term funding
- Quick settlement
- Higher interest rates
- Flexible exit strategies
Best for: Time-sensitive purchases and refinancing
Key Considerations
- Conduct thorough due diligence
- Get professional valuations
- Review lease agreements carefully
- Consider future market trends
- Plan for maintenance costs
- Understand tax implications
Ready to Finance Your Commercial Property?
Let us help you find the right commercial property finance solution for your business.
Written by Lisa Anderson
Commercial Property Finance Specialist