What Is Strata Title and How Does It Work for Industrial Property?
Strata title is a form of ownership where you own an individual unit or lot outright, while sharing ownership of common property, such as driveways, shared fencing and access areas, with the other lot owners in the same scheme. For industrial property, this means you can buy and hold title to a single warehouse or workshop unit within a larger complex, without needing to purchase or manage the entire site. A body corporate, sometimes called an owners corporation depending on the state, is responsible for managing and maintaining the common property on behalf of all the lot owners, funded through regular levies paid by each owner.
In Queensland, strata titled property is more formally known as a community titles scheme, and it operates under the Body Corporate and Community Management Act 1997, generally referred to as the BCCM Act. Under this framework, a body corporate is automatically established when a scheme is registered, and it is responsible for administering the common property and body corporate assets for the benefit of all owners. Schemes are registered under one of several regulation modules depending on their use, and there is a specific Commercial Module intended for schemes like offices, retail premises and industrial units, which carries a different level of regulation to a typical residential apartment scheme. You can read more detail on how this legislation applies through the Queensland Government’s guide to body corporate legislation.
New South Wales uses similar underlying principles but operates under its own legislation, the Strata Schemes Management Act 2015. Commercial and industrial strata schemes in NSW are governed by the same Act as residential schemes, though the day to day priorities of an industrial or commercial scheme tend to differ, covering things like shared loading dock access, trade waste arrangements and after hours access rather than the concerns typical of a residential building. NSW Fair Trading regulates strata schemes across the state and has introduced a number of reforms in recent years aimed at improving transparency and accountability for owners corporations, detailed in the NSW Government’s guide to recent strata law changes.
Buying a strata titled industrial or commercial unit gives you ownership of your specific lot, along with a right to use shared facilities and common property, but it also comes with ongoing obligations. Body corporate levies fund the maintenance of common property, building insurance and any shared services, and the amount you pay is generally based on your lot entitlement, which reflects the size or value of your unit relative to the scheme as a whole.
It is worth budgeting for levies as an ongoing cost of ownership rather than treating them as an afterthought, since they cover things you would otherwise need to manage and pay for yourself if you owned a standalone building, such as building insurance, common area cleaning, and upkeep of shared driveways or fencing. Reviewing the body corporate’s financial records and any planned works before you buy is a sensible step, since it gives you a realistic picture of ongoing costs rather than relying on the current levy amount alone.
By laws also apply within a strata scheme, governing things like signage, hours of operation for certain activities, and how common areas can be used. These are worth reviewing properly before you buy, since they can affect how you are able to operate your business day to day, particularly if your operation involves things like deliveries, noise, or after hours access that a by law might restrict.
Generally, yes, within your own lot, though changes that affect the exterior appearance of the building, structural elements, or common property usually require body corporate approval first. This is different to owning a freestanding building outright, where you have more freedom to make changes without needing sign off from other owners. For a business that wants a highly customised fit out, it is worth understanding these restrictions before purchasing, so there are no surprises once you are ready to set up.
A number of our projects are strata titled, giving businesses the chance to own their own unit within a larger, well managed complex rather than needing to buy an entire site outright. Our project at LYNQ in Tweed Heads South is a good example, boutique strata titled warehouses with shared secure access and common area upkeep managed through the body corporate, so owners can focus on running their business rather than maintaining shared infrastructure themselves.
If you are considering a strata titled industrial or commercial purchase and want to understand how ownership, levies and by laws would work for a specific unit, get in touch with our team and we can walk you through the detail honestly.
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