National Brokers Network

5 tips in buying commercial real estate


When buying commercial real estate, investors must practice due diligence. Otherwise, they risk losing a hefty sum of money and facing unfavourable circumstances as opposed to enjoying the fruits of their investment.

That’s why buying commercial real estate needs time, patience, and tons of planning. Nevertheless, for those who have the means, buying commercial property is still better than renting one out because acquiring real estate is less costly compared to just being a tenant in one.

What makes a winning commercial real estate purchase? Here are 5 steps to achieve success.

  1. Arrange finances 

When it to commercial property acquisition, affordability plays a huge factor in getting the best deals. Prior to taking out a loan from the bank, business  owners must first determine their financial capacity and work with an accountant to set a realistic budget. Financial statements and proof of generated profit are important documents loan officers would want to take a look at to determine how much will be approved. Preparing these in advance is important in ensuring investors get the loan they want or need.


  1. Study the local property market 

Business owners are often quick to make the decision to buy property, but before they jump into the market, they must first study the location where they are looking to buy. Every local market comes with its own tax rates, land laws, as well as environmental issues. A commercial real estate broker Victoria can be a valuable resource when studying the local market. Another point of interest is the availability of skilled labour in the area. Investors must look into the local property market they are considering entering before they make a purchase.


  1. Consult tax experts 

Accountants who are well-versed in the ins and outs of real estate tax implications play a vital role in ensuring business owners get the best possible outcome in their transaction/s. When playing in the commercial real estate market, business owners should have a reliable accountant to turn to for important tax and financial advice.


  1. Plan the layout 

Commercial real estate, no matter the condition, will definitely need renovation and customisation according to the needs and nature of business of the new owner. Investors need to consider the layout well ahead of time and plan the intended design so that work can start on it once the turnover is completed. Adopting the right layout at the very beginning will help decrease operating costs and improve productivity and operational efficiency.  


  1. Look for quality builders 

Once the property has been acquired and the layout finalised, it is time to choose builders who will get the job done. The guiding principle business owners should follow in their quest for good builder deals is “less money, less time, and more value.” Quality builders have good reputation and are responsive to client needs. A background and credit check will also help determine the reliability and work history of builders.

While there are no surefire recipes for guaranteed commercial property acquisition success, these five tips are a good way to start on the right foot.

Image from

Confidentiality Agreement

In Consideration of the Vendor of the subject business, or any other business introduced to the Proposed Purchaser and their agent National Brokers Network (“the agent”) providing information to the Prospective Purchaser, the Prospective Purchaser agrees:

1. To keep all information provided confidential in respect to the subject business and any other business introduced to the Prospective Purchaser by the Agent.
2. That no information is to be disclosed by the Prospective Purchaser to any third party without consent by the Agent;
3. That it will not use for themselves. Or for others benefit, such information other than to Purchase the subject business or other business introduced by the Agent;
4. That any agreement to purchase the whole or portion of the business shall be exclusively through the Agent;
5. To immediately return to the Agent all such information and other details in written form including any drawings and any copies made of written information, notes, summaries or extracts of any document therefor if any when requested by the Agent;
6. Under no circumstances will the Prospective Purchaser make direct contact with the vendor of the subject business or other introduced business without the prior written consent of the Agent;
7. If the Prospective Purchaser breaches this agreement or buys the business direct from the Vendor, the Prospective purchaser is liable to and indemnifies the Agent for any and all losses the agent may incur including economic loss and loss of income.v

Client Signature (Sign on the box below)