Finding the Right Commercial Property

Once you've identified your target locations and property types, it's time to search for options within your budget range. You can look at listings slightly above your maximum price, as there may be room for negotiation or price drops if a property sits on the market.

Realistically, you're unlikely to find a 100% perfect property. The goal is to find one that closely aligns with your key criteria.

Search Methods

There are three main ways to discover commercial property listings:

1.  Real estate websites like realcommercial.com.au allow you to filter by location, price range, and property types. The map view is handy for getting an area overview and seeing available inventory.

2.  Real estate agents in your preferred regions can notify you of new listings that match your criteria if you establish a relationship with them.

3.  Buyer's agents can streamline the search process by leveraging their networks and expertise to find suitable off-market or newly listed properties.

To avoid getting overwhelmed, narrow your search to a few specific areas and property categories. Create a shortlist of the most promising options to visit and potentially make offers on.

Due Diligence Process

When you inquire about a property, the selling agent will provide an information memorandum (IM) containing details like photos, descriptions, tenant info, and investment highlights. However, verify all figures independently during your due diligence, as IMs may omit negatives.

The IM could also include pro forma financials projecting potential future value, but these aren't guarantees. It's advisable to create your own pro forma analysis factoring in planned improvements or operational changes.

Methods of Sale

How offers are made and the contract process unfolds depends on the method of sale, which the agent will communicate. Common approaches include:

Expressions of Interest (EOI)

Non-binding, but may have conditions attached if you proceed to contract.

Fixed Price Listings

The most common method with set asking prices, sometimes indicated as "Price on Application" or "Offers Above $X."

Off-Market Sales 

Properties sold privately, often through agent connections, without public listings.

Auctions

High stakes but can secure prime properties. Requires comprehensive prep like pre-approved financing.

The Right Strategy

The ideal approach gets you the property you want at an acceptable price point. If you need assistance, consider working with an experienced commercial buyer's agent.

For a deeper dive into successful investment strategies, check out our top-selling commercial property book or get in touch to discuss your specific goals.