Interest Rates Are Falling so does Buying a Freehold Business Makes Sense?
Interest Rates Are Falling so does Buying a Freehold Business Ownership Makes Sense?
With interest rates expected to decline, many investors are considering freehold commercial businesses as a strategic investment. These opportunities offer the dual advantage of owning both the business and the property it operates from, providing stability and potential increase in property value.
Understanding Freehold Commercial Businesses
A freehold business includes both the business operation and the property it runs from. Unlike leasehold businesses, where you rent the premises a freehold gives you full ownership and control of the space. You have the potential for the property to increase in value, as well as make money from the business. Sometimes it is referred to as a 'commercial business' but its more commonly known as a freehold business (aka without a lease, but you buy the property).
One of the biggest advantages is the elimination of rent. Instead of paying a landlord, your loan repayments build equity in a valuable asset. Over time, this can save money and create long-term stability. Many businesses will look to buy a commercial space as they grow. Once they start crunching the numbers and realise how much is going towards rent, it's usually a good investment to buy commercial space. Since you are looking to buy a business, you are already many steps down the path.
The property also another asset you can sell when its time to exit the business, or even better, you can hold onto the commercial premises and just sell the business and collect rent, its a good long-term strategy.
Owning the property can also improve your borrowing power. Lenders often see commercial real estate as strong security, giving you more leverage to invest or expand in the future. It can also help you secure the business in the first place.
Market Outlook
The Reserve Bank of Australia (RBA) has recently reduced the cash rate to 3.85% and is anticipated to implement further cuts, potentially bringing it down to 3.35% by the end of 2025. Lower interest rates can make financing more accessible and affordable for buyers.
Additionally, the Australian commercial property market is projected to grow;
"The Australia commercial property market, valued at AUD 34.11 billion in 2024, is projected to experience significant growth, as commercial properties typically feature longer lease terms, which ensure a more reliable and stable rental income... The industry is projected to expand at a robust CAGR of 8.60% from 2025 and 2034. By 2034, the market is anticipated to reach AUD 77.84 billion, as owning commercial property can create valuable networking opportunities with other business owners and investors." Expert Market Research
This makes the combination of purchasing a commercial property and business look like a good long-term option.
Where You’ll Find Them
Freehold commercial business sales are often more common in regional areas, but they can pop up in city suburbs too. You’ll often see businesses like:
Here are three currently for sale, though there are hundreds on the market.
1. Nanneella Post Office & General Store – Nanneella, VIC
Price: $700,000 WIWO Freehold
Established in 1887, this long-standing business includes a licensed post office, general store, and permits for alcohol and ammunition sales. A comfortable 3-bedroom residence is included on the freehold site, making it a rare lifestyle and income combination. Located near Echuca, it attracts steady local trade and passing traffic. Full training is provided, making it ideal for sea-changers or family operators.
2. Natural Mineral Water Bottling Business – Snowy Mountains, NSW
Price: Contact Seller
Set on a vast 158-hectare freehold farm, this award-winning mineral water business features a state-of-the-art bottling plant and factory. With a commercial water licence in place, the operation is ready to scale and take advantage of the growing bottled water market. The location, branding, and infrastructure present a rare opportunity in a high-demand industry.
3. Gourmet Bakery + Freehold Factory – Perth, WA
Price: $650,000 + Stock
With over two decades of successful operation, this bakery includes a freehold production facility and a second retail shopfront in Perth’s CBD. The business benefits from strong foot traffic, trained staff, and a reputation for quality. With the current owner retiring, the sale offers huge potential for growth-minded buyers or experienced food operators looking to secure a well-established brand with property.
Start Running the Numbers
When purchasing a freehold commercial business, you're buying both the business and the property it operates from, so it's essential to do your homework. Carefully assess the cash flow, loan repayments, and projected returns, and aim to build a 5 to 10-year financial forecast to ensure long-term viability.
To find businesses with a freehold component, try Keyword Search: Freehold. In many cases, the seller may offer the option to purchase the premises along with the business. From there, you can filter results by location or industry to find listings that suit your goals.
These businesses are often offered as freehold because the owners have held both the property and the business for many years and are now selling them together.
Tags: listicle buying small business guide
About the author
Catherine Mangana
Customer Support
Catherine enjoys generating articles that highlight some of the opportunities that are now available for purchase on Bsale. She hails from a family of ...
