There are two broad categories of Commercial real estate:
Developed commercial real estate generally includes offices, factories, warehouses, hotels, restaurants and retail outlets. It does not include rural land, but may include rural property which does not fall within the definition of rural land (that is, it is not used wholly and exclusively for carrying on a substantial business of primary production).
Foreign persons need to notify if they want to take an interest in developed commercial real estate that is valued at $54 million or more – unless the real estate is heritage listed, then a $5 million threshold applies. An exception for developed commercial real estate applies to New Zealand investors and United States investors, where a $1,078 million threshold applies instead.
Developed commercial property also includes hotels, motels, hostels and guesthouses, as well as individual dwellings that are a part of these properties. Buying a unit in a hotel that is owner‑occupied or rented out privately (that is, it is not part of the hotel business) is considered to be residential property.
Land for commercial development is vacant land for commercial development.
Foreign persons need to apply to buy or take an interest in land for commercial development (including to start a forestry business), regardless of the value of the land. Such proposals are normally approved subject to development conditions.
All acquisitions of commercial real estate by foreign government investors are notifiable.
Below are a number of questions which relate to different types of Commercial real estate which you may be considering acquiring. Please select the question which best describes your circumstances. For answers to more specific questions please visit the frequently asked questions page.