Selling commercial property isn’t something you do on a whim. It takes planning. A bit of strategy. And a solid understanding of what you’re dealing with.
There are some similarities between selling a commercial property and a residential one, but you’ll need to consider a few more additional matters, and there are more variables to take into account. Furthermore, the procedure is somewhat different and will usually take longer.
Know What Your Property’s Worth
Before anything else, you need to figure out what your property is actually worth. Not what you hope it’s worth. Not what the building used to go for a few years back. We’re talking real, current market value.
Plenty of things can affect the price:
- Location – Is it in a busy business district? Near transport links? Or in an area that’s starting to grow?
- Condition and size – A tidy, well-maintained property with modern features is easier to sell. Bigger spaces? Often more appealing.
- Existing tenants – If the property already brings in rent, that’s a big plus. Buyers love income from day one.
The market itself – Trends change fast. A few years ago, retail spaces were everywhere. Now? Warehouses and coworking spots are in high demand.
Preparation To Sell
When you’re preparing to sell your commercial property, you need to maximise its legal and visual “kerb appeal”. Decluttering is important, and you need to address essential cosmetic issues and repairs. Potential purchasers have to be able to see themselves running their own business from your premises.
Commercial Tenants
When you sell a commercial property, your buyer might want to occupy your property themselves. Should you have commercial tenants already in occupation, it’s possible you’ll have to think about issues like serving them notice, dilapidations, and break clauses. You’ll also need to find out whether your tenant has tenure security under the 1954 Landlord & Tenant Act.
Get a Professional Valuation
You might have a number in mind. But guessing isn’t a strategy. Bring in a RICS-qualified valuer (that’s the Royal Institution of Chartered Surveyors, by the way). They’ll give you a proper appraisal—one that buyers (and lenders) will actually trust.
Think of it like getting your car MOT’d before a sale. It proves what’s under the bonnet.
Fix What Needs Fixing
Buyers notice everything. That drip from the ceiling. The broken light fitting. The peeling paint in the stairwell. So before anyone steps inside:
- Sort out any leaks, cracks or damage
- Replace or repair outdated fixtures
- Give tired areas a quick refresh—it doesn’t have to break the bank
- A well-maintained space signals value. It tells buyers: this place has been looked after.
Information Pack For The Buyer
When selling your commercial property, you need to know the information that potential buyers will need to know. Although it isn’t essential to put an information pack together for the buyer, it’s a sensible idea as they’ll then have all they need for decision making in a single location. Some items to put in the pack include:
- Land Registry documents and property deeds
- Paperwork regarding building regulations, planning permissions, lawful use certification, and use classes.
- EPC
- Asbestos survey for properties constructed before 2000
- Information about business rates
- CPSE replies
- Maintenance records, Fire Risk Assessments and Health & Safety records
- VAT registration documentation
- Information about capital allowances
Costs Of Selling
You need to be aware of the costs involved with the sale of your commercial property and to budget properly for them. They include:
- Surveyor fees for appraisals, valuations and surveys
- Commercial agent fees
- Solicitor fees
- Third-party fees
- Mortgage redemption fee
- Capital Gains Tax (CGT)
- Removal costs
Heads of Terms
After accepting a buyer’s offer, your agent will produce a Heads of Terms. This will stipulate key clauses while providing a route towards completing due diligence. Although Heads of Terms aren’t compulsory, they’re highly recommended.
Your buyer will mostly manage all the due diligence process. They’ll probably want to do a survey and they’ll probably have other enquiries. Although commercial property sales are primarily subject to “buyer beware” or “caveat emptor”, you’re still required to give accurate, detailed, and prompt replies to enquiries raised by the buyer.
Contract Exchange And Completion
Once due diligence is completed, your solicitor requests and accepts the buyer’s deposit for you and arranges for exchange of contracts. On the completion day, once the purchase monies have been received, the transfer documentation is dated and the keys will be released to your property’s new owner.
Worth Noting – Pick the Right Way to Sell
How you sell is just as important as what you sell. There are two main ways to go about it:
Private Sale
This is the most flexible route. You negotiate directly with a buyer—or work through an agent. Why it works:
- You’re in control of timing, price, and terms
- It’s private and tailored, which is great if discretion matters
- You can take your time to find the right buyer
- But—be ready for a longer process. Good deals can take time.
Auction
Need a faster sale? Auction might be your best bet. Here’s what to expect:
- You get a set completion date (often within 28 days)
- There’s a competitive bidding environment
- Once the hammer drops, the sale is legally binding
Just keep in mind—auctions can be unpredictable. You might not hit full market value, especially if the right buyers aren’t in the room.
So which is better? It depends.
- Want speed? Go auction.
- Want control? Go private.
- Selling a niche or high-value site? A private sale usually works better.
Talk it over with your agent. They’ll help you match your method to your goals.
Get It Online
List it where the serious buyers are looking.
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If you need help with the legal side, we are here to help. Contact our commercial property solicitor team today.
