Poor preparation costs money.
It leads to slower sales, lower prices, and last-minute surprises that derail deals.
Commercial and industrial properties are complex by nature. Getting clarity on best practices when selling your property gives you leverage – so you can walk away with your ideal outcome.
Before going to market, read this practical guide to help you move with speed and confidence, and seriously reduce risks.
Due diligence: Getting your house in order
Serious buyers will carry out their own investigations. We recommend being proactive; do the work to remove friction and build trust. When you can anticipate buyers’ questions, you can have the answers ready.
1. Title & legal fundamentals
Buyers back away when risks are hidden.
All parties benefit when you’re upfront about titles, easements, boundaries, caveats and covenants. Identifying risks or disputes early saves backtracking later on, when you’ve already invested time into a potential deal.
In New Zealand, legal ownership of land is recorded by Land Information New Zealand (LINZ). Make sure your records are current and accurate.
Here’s a snapshot of the fundamentals:
- Title: A description of a property’s owners, boundaries, rights and restrictions.
- Easement: This grants the right for others to use the land, such as adjoining property owners, local councils, or utility companies.
- Convenant: Rules the landowner must follow, from permitted building materials to activity restrictions.
- Caveat: A notice that a person other than the legal owner is claiming an interest in land. A registered caveat prevents the property owner from selling, mortgaging or transferring land.
2. Lease documentation & tenant records
If your property is tenanted, the income history and tenant story is everything. Share up-to-date lease agreements, tenant performance, and renewal information.
This acts as reassurance about the property’s future income.
Have ready:
- Tenant background and story
- Current Deeds of Lease
- Deeds of Renewal
- Deeds of Rent Review
- Rent roll and outgoings schedule
- Tenant payment history
It’s also worth knowing your weighted average lease term (WALT) – the remaining lease term for all tenants. A higher WALT points to stability, but it also suggests less room for flexibility. To calculate it, simply add the years remaining on all leases and divide that figure by the number of leases.
3. Compliance & operational reports
A lack of transparency around compliance slows or kills deals.
Buyers want certainty that the building is safe, legal, and fit for purpose.
Having reports ready speeds up due diligence:
- Building Warrant of Fitness (BWoF): Assurance that safety systems are working well, issued by the building owner.
- Asbestos report & Seismic rating: May be necessary for older buildings.
- Code of Compliance Certificate (CCC): Proof that building work has been carried out with the necessary consents. Without a CCC, your property might sell for significantly less.
- Traffic or access management: Plans outlining delivery zones, vehicle crossings and/or any traffic flow obstructions – particularly important for industrial sites.
- Council regulations: Covering external regulations like local noise restrictions and accessibility standards.
Value enhancements before you list
Before you sell, understand what the property is worth – and where you can improve it.
Commercial and industrial property specialists like James Group can provide a price estimate by examining comparable sales in the area. We leverage our industry knowledge and market conditions to assess your property’s value.
Of course, it’s in your best interest to build on that value. Small moves can make a big difference to buyer perception and price.
Physical presentation
Make the right first impression with upgrades that matter:
- Refresh landscaping and facade
- Clean common areas
- Fix visible defects
- Repair damaged fittings
- Remove eyesores, like rubbish and graffiti
- Repaint where needed
Operational efficiencies
Buyers value predictability and lower operating costs.
Make the handover as smooth as possible by detailing:
- Energy efficient upgrades (e.g. LED lighting, HVAC improvements)
- Maintenance logs
- Service contracts
- Operating cost breakdowns
Lease upside opportunities
Enhance the value of your property in tangible ways. Value doesn’t just lie in current income; buyers also want to know about future potential.
Define the following opportunities:
- Upcoming renewals
- Market rent increases
- Vacancies that could be leased
- Expansion or development potential
Smart marketing to sell a commercial property
An influx of quality enquiries doesn’t happen by accident. It comes from deliberate strategy, intelligent positioning, and disciplined execution.
At James Group, we don’t “list and hope.” We design a targeted campaign built around your specific asset and the most likely buyer profiles.
Getting it right is the difference between simply reaching more buyers and reaching the right buyers quickly.
We take care of the entire process, from targeting buyers to framing your property effectively.
Buyer targeting
We’ll build a clear profile of your target buyer. Are they strategic investors, local business owners, franchisees, property managers or something else?
Once we’ve identified who’s most likely to buy, we know where to focus our marketing efforts, and we can refine our message. Advertise on commercial and industrial property listings, and consider other routes such as social media, print media, and email campaigns.
Marketing assets
Enhance the appeal of your property with high-quality photography and clear site plans or 3D tours.
Provide as many details as possible, including the property’s features, income potential, outgoings, and other selling points.
Tighten up your pricing strategy
Pricing in commercial and industrial sales is a balancing act. Go too high and buyers don’t engage. Price too low and you leave money on the table.
Commercial property isn’t priced by instinct, but by income, risk, and comparable sales.
Where applicable, buyers want to know about:
- Net passing income
- Lease strength and tenant quality
- Lease term (WALT)
- Outgoings and operating costs
- Risk profile
From there, they apply a capitalisation rate (cap rate), or square meter rate, to determine value. The clearer your offering, the easier it is to justify your pricing.
Gathering insights about the market will also help you define a price. Buyers are benchmarking against similar property types, location, yield expectations, and building condition. That means you should do the same. Overprice or skip the evidence, and buyers will simply walk away.
Our final point on pricing: Understand the risk premium. Higher-risk properties are naturally priced lower.
Common factors that affect pricing:
- Short leases or upcoming vacancy
- Weak tenants
- Deferred maintenance
- High outgoings
- Compliance gaps
- Secondary locations
Where you can, reduce risk before going to market. Where you can’t, be upfront from the get-go.
