Guide
Commercial buyers agent: buying commercial property in Australia
Rising Returns buys commercial property for clients across Australia. Here's what a commercial buyers agent does, how commercial differs from residential, what we check before you commit, and how the process works.
By Mossy Taheri, licensed buyer’s agent · Updated
The short answer
A commercial buyers agent works only for the buyer of a commercial property: an office, shop, warehouse, medical suite or mixed-use building. In commercial property the lease is most of the value, so the job is as much about the tenant, the lease terms, the outgoings and the zoning as the building. Rising Returns finds, checks and negotiates commercial property for clients across Australia, and is paid by you, never by the seller.
What does a commercial buyers agent do?
A commercial buyers agent represents the buyer from the brief to settlement. Selling agents act for the vendor and aim for the highest price and the best terms for them. A buyers agent does the opposite: it finds the property, tests the income behind it and negotiates for you.
- Set the brief: budget, deposit, how you'll hold it (personally, in a company, trust or SMSF), target yield and risk.
- Search on and off market, including properties that are only offered to agents who ask.
- Read the leases and the tenant's position before you spend money on reports.
- Coordinate the solicitor, building inspector, valuer, broker and accountant.
- Negotiate price, settlement terms, due diligence periods and any rent guarantees or incentives.
- Manage the purchase to settlement and hand over to a property manager.
Commercial vs residential property: what changes
The biggest difference is where the value comes from. A house is valued mainly on comparable sales. A commercial property is valued mainly on its net income and how secure that income is, so the lease and the tenant matter more than the finishes.
| Residential | Commercial | |
|---|---|---|
| What sets the price | Comparable sales | Net income, lease security and comparable yields |
| Lease length | Usually 6 to 12 months | Often several years, with options to renew |
| Outgoings (rates, insurance, maintenance) | Paid by the owner | Often recovered from the tenant, depending on the lease |
| Vacancy risk | Usually re-let within weeks | Can take months to re-let, sometimes with incentives |
| Finance | Higher loan-to-value ratios available | Lenders usually want a bigger deposit and review the lease |
| GST | Not charged on established homes | Often charged, unless sold as a going concern |
Neither is better in general. Commercial property can suit investors who want income and are comfortable with longer vacancy risk. Residential property usually suits buyers who want broader demand and easier finance. For the residential side, see our investment property buyers agent service.
Types of commercial property, and what to watch
Retail
Shops and strip retail depend on foot traffic, parking and the tenant’s trade. Check the tenant’s length of occupation, how the rent compares with the street and whether retail leasing laws in that state limit what can be recovered.
Office
Smaller offices and strata suites can be sensitive to vacancy in the surrounding area. Check vacancy nearby, the building’s services and lifts, and whether the space suits more than one type of tenant.
Industrial and warehouse
Factories, warehouses and showrooms are judged on access, clearance, hardstand, power and zoning. Contamination from past uses is a key risk, so environmental checks matter.
Medical, childcare and service
Medical suites, childcare centres and service-based tenancies can carry longer leases, but they rely on fit-outs and approvals that suit a narrow group of tenants. Check the approvals and what it would take to re-let to someone else.
Mixed use
A shop with a flat above, or a building with several uses, combines residential and commercial rules. Lending, GST and tax can apply differently to each part, so confirm how the lender and your accountant will treat it.
What we check before you buy a commercial property
Most of the risk in a commercial purchase sits in the documents, not the building. These are the checks we work through before an offer becomes unconditional.
- The lease: term remaining, options, rent review method (fixed, CPI or market), make-good, assignment and any rent incentives still running.
- WALE: the weighted average lease expiry, which shows how long the income is secured across all tenants.
- The tenant: how long they’ve been there, the strength of the business, guarantees and bank guarantees held.
- Outgoings: which costs the tenant pays, how they’re recovered, and whether the figures in the listing match the lease.
- Zoning and permitted use: that the current use is approved and what else the site could be used for.
- Building and compliance: structure, roof, services, fire safety, asbestos, and the annual fire safety statement where required.
- Strata records for strata units: levies, sinking fund, disputes and planned works.
- Market rent and vacancy: whether the rent is sustainable and how long a similar space takes to re-let nearby.
Read more about how we research property on research and due diligence.
GST, stamp duty and land tax on commercial property
Taxes on commercial property differ from residential in three main ways. This is general information only, so confirm your position with your accountant or solicitor before you sign.
- GST: GST is often added to the price of commercial property. A tenanted property can be sold GST-free as a going concern if the buyer is registered for GST, both parties agree in writing and all the leases go with the sale (ATO, selling commercial premises).
- Stamp duty: stamp duty applies to commercial purchases in every state, at rates set by each state. Use our stamp duty by state comparison as a starting point.
- Victoria’s commercial and industrial property tax: since 1 July 2024, commercial and industrial land that changes hands enters a new regime. Stamp duty is paid on that first purchase, then an annual tax of 1% of the site value starts 10 years later, and later purchases of that land are generally exempt from duty (State Revenue Office Victoria).
- Land tax: commercial land isn’t covered by the home exemption, so land tax usually applies. Some leases pass it on to the tenant. Compare thresholds on land tax by state.
How a commercial purchase works with Rising Returns
- Discovery call: your budget, deposit, structure, timeframe and what you want the property to do for you.
- Brief and strategy: property type, locations, target yield, lease length and the risks you’ll accept.
- Search: listed and off-market opportunities, short-listed on the income, the tenant and the location.
- Due diligence: lease and tenant review first, then legal, building, valuation and finance checks.
- Negotiation: price, settlement, due diligence periods and conditions, with your approval before every offer.
- Settlement and hand-over: through to keys, then a hand-over to a commercial property manager.
We buy across Australia, so the market is part of the decision. See national vs local buyers agents for how buying in another state works.
Commercial buyers agent in Brisbane, Sydney, Melbourne and across Australia
We act as a commercial real estate buyers agent in every state and territory. The process above is the same everywhere; what changes is the leasing law, the state taxes and the local tenant market.
Brisbane and Queensland
Retail tenancies in Queensland are covered by the Retail Shop Leases Act 1994 (Qld), which sets disclosure rules and limits what can be recovered from retail tenants, so the outgoings in the listing need checking against the lease. See our Brisbane buyers agent page for how we buy there.
Sydney and New South Wales
Retail leases in New South Wales fall under the Retail Leases Act 1994 (NSW), with rules on disclosure statements, minimum lease terms and recoverable outgoings. NSW transfer duty and land tax apply to commercial property, so the holding costs belong in the numbers before you offer. See our Sydney buyers agent page.
Melbourne and Victoria
Victorian retail leases are covered by the Retail Leases Act 2003 (Vic), and landlords generally can’t pass land tax on to retail tenants. Commercial and industrial land bought in Victoria also enters the commercial and industrial property tax regime explained above. Melbourne buyers often call us a commercial buyers advocate. See our Melbourne buyers agent page.
Other cities
We also buy commercial property in Perth, Adelaide, Canberra, Hobart, Darwin and the major regional centres. Each state has its own retail leasing law and duty rates, so we confirm them with your solicitor for every purchase. Compare duty on stamp duty by state.
Who uses a commercial buyers agent?
- Investors adding commercial property to a residential portfolio for income.
- Business owners buying their own premises, often through a company, trust or SMSF.
- SMSF trustees buying business real property, with their adviser's input on the rules.
- Buyers purchasing in a city they don't live in and can't inspect easily.
- Busy professionals who want the leases and reports reviewed before they commit.
Commercial buyers agent fees
Commercial buyers agents usually charge a fixed fee or a percentage of the price, depending on the size and complexity of the purchase. We quote after a free discovery call, once we understand the brief. For how fees work generally, see buyers agent fees in Australia.
Looking at a commercial property?
Book a free discovery call. Tell us your budget, the type of property and how you'll hold it, and we'll tell you how we'd approach it.
Book a free discovery callCommercial buyers agent: common questions
What does a commercial buyers agent do?
A commercial buyers agent acts only for the buyer of a commercial property. They set the brief, search on and off market, review the leases, tenant and outgoings, coordinate the legal, building and finance checks, and negotiate price and terms. They're paid by the buyer, never by the seller or the selling agent.
Is a commercial buyers agent worth it?
A commercial buyers agent is usually worth it when the lease, the tenant and the zoning carry most of the risk, which is the case for most commercial property. A lease with a weak tenant, short term or one-sided outgoings clause can cost far more than the agent's fee. It also helps when you're buying in a city you don't know well.
How is buying commercial property different from residential?
In commercial property the lease drives the value. Leases are longer, tenants often pay most of the outgoings, and the price is set mainly by the net income and how secure it is. Lenders usually want a bigger deposit, GST can apply to the price, and some states tax commercial land differently from residential land.
Can an SMSF buy commercial property?
Yes. A self-managed super fund can buy commercial property, and business real property is one of the few assets a fund may buy from a member or related party, at market value. The fund can then lease it to a member's business at market rent. The rules are strict, so get advice from your SMSF accountant or adviser before you buy.
Is GST payable when you buy commercial property?
Often, unless the sale qualifies as a going concern. A tenanted commercial property can be sold GST-free as a going concern if the buyer is registered for GST, both parties agree in writing, and all the leases go with the sale. Otherwise GST is usually added to the price, so check the contract and get tax advice.
How much does a commercial buyers agent cost?
Commercial buyers agents usually charge a fixed fee or a percentage of the purchase price, and the fee depends on the size and complexity of the purchase. Rising Returns quotes after a free discovery call, once we understand the brief. Our buyers agent fees guide explains how fees are usually structured.
General information only. It doesn’t consider your personal circumstances and isn’t financial, tax, credit or legal advice. Speak to a licensed professional before you act.