Have You Prepared Your Commercial Property For Sale or Lease?

Have You Prepared Your Commercial Property For Sale or Lease?

There are a number of items which you need to prepare after you have listed your commercial property for sale or lease. These may include:

1.         Disclosure Document - To make sure that the people looking at buying or leasing your property to keep the information confidential and don’t tell your current tenants if there are any.

2.         Information About the Property – Basic overview of your commercial property including size of property, office space size (may be different to the size of the property if there is yard space), type of power (i.e. 3 phase power for construction and machinery or single phase power), water supply, phone lines, access to internet, etc…

3.         Are there current tenant and when does this expire? – This is for people who are looking at buying a commercial property as an investment, or if they are looking to move into the property themselves.

4.         Prospective Income or Lease Payments and Outgoings for Property – How much can the prospective buyers make from leasing the property or how much will the lessee need to pay for to lease the property off you. Will the lessee be paying for electricity, excess electricity, water, excess water, etc… as a part of the lease agreement? This is essential for both a buyer and lease agreement so that everyone can work out the exact payments required from the start.

5.         Contract of Sale or lease – Contract to transfer the ownership of your commercial property to a new owner or leasing agreement for the new leaser.

These are only a few items which need to be prepared before you sell your business or franchise and some of these items can be prepared by Business Brokers/ Real Estate Agent and Solicitors in the sales process. Leasing laws can be different in each state, but for a good overview of what you need to know about leasing a commercial property, please read the following links

1. http://www.smallbusiness.wa.gov.au/leasing-commercial-premises-3/
2. http://www.business.gov.au/BusinessTopics/Fairtrading/Pages/Retailleasing.aspx
3. http://www.sa.gov.au/subject/...