Quick answer: Commercial vacancy can last much longer than residential vacancy and can involve incentives, agent fees, make-good and fitout contributions. Keep enough liquidity to service debt and property outgoings through a realistic downtime scenario rather than using every dollar as the deposit.
Questions borrowers, investors and developers commonly ask
- How many months of repayments should I keep for a warehouse vacancy?
- What costs continue when a commercial tenant leaves?
Model more than lost rent
Debt service, rates, insurance, land tax, body corporate, repairs, leasing commission, incentives and fitout contributions can all hit during vacancy.
Use property-specific reletting assumptions
A generic industrial unit in a deep market is different from a specialised regional asset. Set the buffer from likely downtime and cost to re-lease.
Related guides
General information only. Commercial-property and development lending criteria vary by lender, transaction, security and market conditions. This is not legal, tax or investment advice.
Frequently asked questions
How many months of repayments should I keep for a warehouse vacancy?
Commercial vacancy can last much longer than residential vacancy and can involve incentives, agent fees, make-good and fitout contributions. Keep enough liquidity to service debt and property outgoings through a realistic downtime scenario rather than using every dollar as the deposit.
What costs continue when a commercial tenant leaves?
Debt service, rates, insurance, land tax, body corporate, repairs, leasing commission, incentives and fitout contributions can all hit during vacancy.
Will every lender treat this the same way?
No. Commercial and development lending policy varies materially by lender and transaction.
Should I apply before the structure is tested?
For material or unusual transactions, test lender fit and the funding structure before creating formal applications.
Sources and verification
Need help matching this to a business-finance option?
GPS Finance can review the funding purpose, conduct, documents and lender fit before you make a formal enquiry.
