When REIWA announced Anna Valentine as Commercial Salesperson of the Year, the spotlight was on the trophy, the photos and the applause.

But the work that actually earns an award like that usually happens quietly – behind closed doors, with real people facing big, sometimes uncomfortable decisions.

One of those stories involves a family, an industrial property in Perth, and a decision they knew they would only make once.

This is that story.

“Dad built this place.”

At the first meeting, the owner said six words that changed the tone of everything:

“Dad built this place.”

The building had been in the family for more than 50 years. It had seen the business through good years and tough ones. It had paid school fees, funded lifestyles, and underpinned retirement plans.

Now the family was at a turning point. They wanted to free up capital, reduce the stress of owning an ageing building, and still keep part of the premises for the business. A sale with a leaseback made sense on paper – but selling a property you intend to lease back from the buyer is never a simple, tick-the-box exercise.

An imperfect asset, and protective owners

This was not a shiny new warehouse.

It was a typical older industrial property: Maintenance that had been “patched” over time, structural items that were likely to come up in a building report and layout quirks that worked for the current business, but might not suit every occupant.

The sellers knew buyers would look closely at these issues. They were realistic – but also protective. This building was part of their story, not just a list of defects.

Anna’s job was to help them see it through a buyer’s eyes, without losing sight of what it meant to them.

The first buyer – and the deal that fell over

The campaign started well. Within days, Anna had a strong offer from an experienced buyer. Everyone breathed out. It felt like things were on track.

Then due diligence began.

Reports, inspections and questions started to stack up. So did the buyer’s concerns about future works, risk and how the leaseback would sit with all of that. In the end, despite everyone’s efforts, the buyer walked away.

For the family, it was gutting.
For Anna, it was the moment the real work started.

Regrouping without panicking

When a deal collapses, it’s easy to default to discounting or pulling the pin altogether.

Instead, Anna sat back down with the family and walked them through what had actually happened. She went through the buyer’s feedback, separated genuine, priced-in risk from fear of the unknown, and used that insight to refine the way the property was positioned.

Then she went back out to the market – this time with an even clearer understanding of who our ideal buyer was and how to present the opportunity:

• More upfront about the age and condition of the building
• Clearer about why the leaseback still represented value
• Focused on buyers comfortable with older stock and long-term tenants

Within weeks, a new offer was presented.

This time, the terms were better than the original one.

Getting a complicated deal to the finish line

Once the new offer was accepted, the delicate part began.

The family still needed to occupy part of the building. The buyer needed confidence that the leaseback made commercial sense. The building issues had to be properly understood and factored in.

Anna became the air traffic controller of the transaction – coordinating consultants, keeping lawyers, buyer and family aligned, and negotiating the practical details of the leaseback.

Her role wasn’t to gloss over problems. It was to keep everyone talking, with the right information at the right time. Sometimes that meant helping the buyer understand that certain risks were already reflected in the price. Other times it meant sitting with the owner while a report criticised a building their father had constructed with his own hands.

The outcome: more than just a big number

When settlement finally took place, the headline result was strong: a premium price for a complex, older asset, a smooth transfer of ownership, and a secure leaseback so the seller’s business could stay put.

Behind that were quieter wins:

• The family walked away with the capital they needed for their next chapter
• The business kept continuity in the premises it relied on
• The process felt managed with care, not pressure

For Anna, this sale wasn’t just about a result. It was about protecting people and relationships while still delivering a robust commercial outcome.

Why this contributed to Anna’s award

When REIWA looked at examples of Anna’s work, this transaction stood out because of what it took to get there:

• Staying calm and constructive when the first sale collapsed
• Listening to buyer concerns and using them to reposition the property
• Balancing emotional attachment with commercial reality
• Guiding a family through a once-in-a-lifetime decision with empathy and clear communication

Those are the skills that don’t always show up in a sales summary.

If you’re facing a “we can’t afford to get this wrong” decision

Many of the owners we speak with aren’t serial investors. They’re families and business operators who have:

• Held a property for decades
• Reached a point where unlocking capital makes sense
• Want to understand their options for the business to continue in the premises

If that’s you, you’re not just selling a building. You’re making a decision about your future.

Anna’s award is a nice acknowledgement. But the real success is stories like this – where a family can move into their next chapter with confidence, knowing they’ve done right by both the numbers and the people involved.

If you’d like to quietly benchmark your position and explore your options – whether that’s a straight sale or a sale with leaseback – we’re here to talk it through before you make a move.

This prestigious recognition celebrates excellence in Western Australia’s real estate industry, and anyone who’s worked alongside Anna knows just how deserving she is of this honour.

Known for her calm, strategic approach and deep understanding of complex transactions, Anna consistently delivers outstanding outcomes across a diverse range of commercial sales — from family-held assets to high-stakes leaseback deals.

Her professionalism is matched by genuine care for clients, ensuring every decision is thoughtful, transparent, and grounded in long-term value.

Beyond her client success, Anna has played a pivotal role in refining our agency’s operations, strengthening our sales and leasing processes, and mentoring emerging talent within the team.

Her leadership, integrity, and unwavering consistency continue to set the benchmark for excellence — not just within Perth Commercial Property, but across the wider commercial real estate industry.

Congratulations, Anna — a well-deserved win and a proud moment for our team!

These awards recognise genuine professionalism, integrity, and the impact made within our communities – values that guide everything we do at PCP.

Our 2025 Nominations

1. Commercial Agency of the Year
This category highlights agencies that deliver exceptional client service, strong business results, and an outstanding culture. Being recognised here reflects our team’s continued focus on dependable outcomes and long-term client partnerships.

2. Commercial Salesperson of the Year – Anna Valentine
Anna’s nomination celebrates her commitment to achieving the best results for her clients while maintaining the care, transparency, and professionalism that define our approach to commercial real estate.

3. Wellbeing Award
We’re particularly proud of this one. The Wellbeing Award recognises agencies that put their people first – fostering a culture where team members can thrive both personally and professionally. From open feedback through Officevibe to wellness perks like our sauna, cold plunge, and treadmill desk, we’ve built an environment that balances performance with wellbeing.

“These nominations mean a lot because they recognise both what we achieve for our clients and how we show up for each other every day.”
– Marc Valentine, Director

We’re proud of our team and grateful to our clients who trust us with their properties and partnerships. Recognition like this reminds us why we love what we do – helping Perth’s investors and businesses achieve results they can rely on.

If that sounds like you, and you’re wondering if your property is performing as well as it could be, this self-audit will help you get clarity — without the jargon or sales pitch.

The Accidental Investor’s Challenge

You might be managing commercial property now, but that wasn’t the original plan. Maybe you inherited a property, bought your business premises, or picked up an investment or two along the way. Over time, you’ve found yourself with a portfolio — but not a strong strategy or playbook.

You’re not alone. Many commercial property owners in your position are quietly asking:

• Is my commercial property performing at its best?
• Am I carrying unnecessary risk?
• Could I be missing hidden opportunities?

This is where a simple self-audit comes in.

We’ve created a practical checklist to help you take stock — and spot areas that could be costing you money, increasing your risk, or holding back your returns.

The Self-Audit Checklist: 7 Quick Checks for Accidental Investors

Common Pitfalls (and the Hidden Wins)

Even well-meaning, diligent owners fall into these traps. Here are some of the most common issues we see — and the upside of addressing them.

1. Leaving Rents Below Market

“You might be giving your tenant a huge discount… without realising.”

If your rent hasn’t been reviewed recently, you could be losing thousands in income and devaluing your asset.

Hidden Win: A rent review aligned with current market conditions can significantly increase both income and capital value.

*Caveat – We see a lot of Landlords who have offered their long-standing tenants special rental concessions, which is perfectly fine. This is to bring attention to those unintentionally undercharging rent.

2. Poorly Structured Leases

“The wrong lease terms can shift repairs and outgoings costs back onto you.”

Leases that are inherited or created without a long-term strategy often lack proper make-good clauses, maintenance responsibilities, or sufficient terms to protect the Landlord if things go pear-shaped.

Hidden Win: A lease review can highlight gaps and help you protect yourself and your returns.

3. No Plan for Vacancies

“One empty property can drag down your whole portfolio’s performance.”

Without a leasing strategy, vacancies can extend longer than they should.

Hidden Win: Having a plan in place reduces downtime and stress when a tenant leaves.

4. Neglecting Appraisal and Valuations

“If you don’t know what it’s worth, you can’t leverage it.”

Many owners haven’t had a proper valuation in years. That could mean missed equity, financing options, or estate planning opportunities.

Hidden Win: A current appraisal or valuation can help with refinancing, tax strategy, or future sale planning.

5. Under-Recovery of Outgoings

“You might be paying for costs your tenant should be covering.”

Common outgoings like rates, water, insurance, property maintenance, and even property management are often recoverable — if your lease is structured properly.

Hidden Win: A quick lease review can unlock thousands in missed outgoings recovery.

6. Insurance & Compliance Gaps, Lease Security

“Not all policies cover what you think they do — don’t wait until it’s too late.”

Policy terms shift. Tenants change, properties become vacant, and replacement costs increase. Coverage doesn’t always match your needs. Many owners don’t realise this until it’s too late.

“Regulations change — and some property owner obligations aren’t obvious.”

Legislation, property-specific regulation, and compliance evolves constantly. Don’t assume you’ve got it covered.

Are you holding sufficient lease security from your tenant in the form of a Bond or Bank Guarantee? When was the last time it was reviewed, or increased as rents have escalated?

Hidden Win: A policy check ensures alignment and provides peace of mind.

Hidden Win: A basic compliance check helps reduce liability and protects your insurance validity.

7. Treating It Like Residential / Doing It All Yourself

“Commercial plays by different rules.”

Applying residential instincts to commercial property can lead to underperformance. And doing it all yourself? That usually costs more time and money than it saves over the long run.

Hidden Win: Partnering with commercial experts helps optimise performance and free up your time.

Download a comprehensive property performance audit checklist below and see how your property measures up.

Book a Free 20-Minute Portfolio Clarity Call

Interested in our opinion on how your commercial property is stacking up? We offer a no-obligation Portfolio Clarity Call for commercial property owners who qualify:

• Get a rental performance check
• Identify risk areas or gaps in your lease
• Highlight practical next steps to improve outcomes

As we approach 30 June, it’s a key time for commercial property owners to get their financial and operational affairs in order. Whether you’re a hands-on landlord or rely on a property manager, the end of financial year (EOFY) is a valuable opportunity to tidy up records, identify savings, and plan for the year ahead.

Here’s a practical checklist to help you make the most of it.

1. Finalise Rent Reviews & Lease Items

Ensure that any outstanding market reviews, CPI increases, or rent escalations are applied. If a lease has an option or expiry coming up, now’s the time to confirm next steps.

Tip: A good property manager will have these milestones tracked and actioned without you needing to chase.
At PCP, we proactively finalise reviews and provide updates on critical lease dates.

2. Prepare to Reconcile Outgoings

Review your property’s income and expenses to ensure all recoverable outgoings have been correctly passed through to the tenant.

• Are all shared costs allocated fairly?
• Has the annual outgoings reconciliation been scheduled?
• Have you forwarded any directly paid invoices to your property manager?

PCP handles outgoings reconciliations as part of our standard EOFY process and can provide tailored reports for your accountant.

3. Schedule Maintenance or Capital Works

Now’s a good time to consider any repairs or improvements, especially if you’re looking to bring forward tax-deductible expenses or improve asset value.

• Repairs may be deductible immediately.
• Capital improvements may need to be depreciated over time.

4. Review Your Depreciation Schedule

If you’ve completed renovations, upgrades, or purchased new assets, your depreciation report may need updating to ensure you’re claiming the maximum allowable deductions.

Talk to your accountant or quantity surveyor to determine if an update is worthwhile.

5. Speak With Your Accountant About Tax & Super Changes

The government has proposed changes to superannuation for balances over $3 million, including taxing unrealised gains from July 2025. This could affect SMSFs with commercial property holdings—particularly when considering whether to hold, improve, or sell.

Discuss with your accountant:

• Whether your SMSF is impacted
• Timing of income, deductions, and property-related decisions
• CGT or GST considerations around any planned sales

6. Pull Together Your Reports

Your accountant will need clear records to finalise your tax return. Ensure you have:

• A full income and expense statement
• Any outgoings reconciliations
• Invoices for major works or compliance checks
• Updated lease schedules

We can supply these directly, including historical data if required.

Wrapping Up

EOFY doesn’t have to be stressful—with a clear plan, it’s a chance to boost returns, tidy up loose ends, and prepare for a strong FY25.

Need help with any of the above?
Click the link below to contact our team—we’re here to make property ownership easier.

An investor’s motivation for appointing a commercial property manager varies depending on the situation and the investor profile. Private investors, SMSFs, syndicates or funds all have their own motivations, complexities and specific needs.

Other factors also at play can include whether an investor is based locally, interstate or overseas.

Generally, though, a property manager’s core duties remain the same—rent collection, payment of outgoings along with the generation of outgoings annual budgets and reconciliations, property maintenance, lease renewals and tenant retention.

At its heart, the decision to appoint a commercial property manager is about protecting and maximising the return on investment (ROI) while preserving—and ideally enhancing—the capital value of the asset. It’s also about freeing the property owner from the daily demands and distractions of management.

The thought of switching commercial property managers might seem daunting, but once the initial resistance has been overcome and the decision to commit to change has been made, it’s actually a fairly simple process—and our team are here to guide you through it step by step.

If you appoint Perth Commercial Property, we can take care of the entire changeover process for you. From liaising with the outgoing agent, to notifying and meeting with the tenant to ensure a smooth transition.

When to consider changing property managers?

Generally, property owners who approach us about a change in property management fall into two broad categories

1. They are self-managing, and the time has come to hand the reins over to professional managers
2. They have become dissatisfied with their current property management service provider
   

Either of the above can result in poor outcomes over the long term, but let’s explore

1. Self-management first:

We believe the “it takes a village to raise a child” mantra applies to commercial property. In our experience, it takes a team to manage a highly performing commercial property potfolio.

The task of self-managing a commercial property—whether by choice, or if the role has been thrust upon you due to family or other circumstances—is a burden, often falling upon a single individual to shoulder the bulk of the work.

Although it’s not impossible for one person to be invoicing, managing rental arrears, outgoings recovery, compliance, insurance, property maintenance, rent reviews etc… that person will be stretched very thin and likely be unable to give the critical areas of asset management the attention they deserve.

We have invested years into building a strong, experienced team of property professionals, both internal and external to our business, including Commercial Property Managers, Property Management Assistants, accounts personnel, property lawyers, valuers, maintenance contractors, inspectors and insurance brokers who are experts in their respective fields.

When appointed, we are often able to deploy our expertise—and the expertise of those trusted professionals around us—to make dramatic improvements, turning things around quickly and setting the asset and tenancy back on track.

2. Dissatisfied with the current managing agent

Whether they have ceased to be proactive, or communication has fallen away… trust, once eroded, is a hard thing to re-establish.

If complacency has set in, and you have lost faith in your managing agent, it might be time for a change.

Below are some of the key areas that prompt property owners to look for an improved level of service:

Communication and responsiveness

Some property managers avoid difficult conversations or delay communication when they can’t deliver a desired result, creating frustration for owners and tenants alike.

We aim to remain accessible and responsive while dedicating time to high-value tasks such as tenant retention, income optimisation, critical property maintenance and arrears follow-up. We have the right people to balance important strategic work with urgent day-to-day needs.

Accuracy and attention to detail

Due to the larger values involved in commercial property, even small oversights can have major financial consequences.

For example, overlooking or miscalculating a rent review on a $200k per year commercial tenancy by a few percent can have a major flow-on impact.

Our Director and Licensee, Anna Valentine, is a Chartered Accountant with a background in Audit (Manager level) at PwC. Attention to detail and a high standard of accuracy are in Perth Commercial Property’s DNA.

Staff turnover

High turnover is one of the most common complaints we hear from property owners: “My property manager keeps changing—I don’t even know who I’m supposed to deal with anymore.”

This is often a symptom of a high-volume, low-fee agency model. When property managers are overworked or unsupported, turnover rises, leading to poor outcomes for both landlords and tenants.

At Perth Commercial Property, we prioritise staff satisfaction and retention. We offer a supportive work environment that values autonomy and balance. As a result, our team turnover is well below industry norms. 

Happy team, happy clients.

Common Myths About Changing Property Managers

Despite the benefits, many landlords hesitate to switch commercial property managers due to persistent myths. Let’s clear a few up:

Myth 1: “Changing property managers will upset my tenant.”

Tenants are often relieved by the change, especially if the outgoing manager was difficult to deal with. We prioritise tenant engagement, meeting the tenant early and managing the transition professionally. A well-managed property benefits everyone.

Myth 2: “It’s too much hassle.”

We hear this one a lot. But the truth is, once you’ve appointed us, we handle everything—notifying the outgoing agent, collecting documents, transferring funds. You won’t be burdened with administrative tasks.

Myth 3: “I’m locked into a contract and can’t change.”

This varies contract-to-contract. We will happily review your current agreement and advise you on your options.

Myth 4: “It’s easier to just wait and see if things improve.”

If you’re already dissatisfied, improvement is unlikely without a significant change. Meanwhile, your property’s performance will continue suffering.

Myth 5: “All property managers are the same.”

They’re not. Service quality, communication, attention to detail, care factor, and proactivity vary widely. We pride ourselves on our boutique, hands-on service tailored to each client. Our long-term client relationships, low team turnover, and strong Google reviews reflect this.

Is changing Commercial Managing Agent difficult?

Not at all. Once we are formally appointed, we can manage the entire process. If you prefer, we can contact the outgoing agent on your behalf, arrange file and bond transfers, notify the tenant and set up an in-person meeting.

Our focus is on making the transition seamless for both owner and tenant.

Get in touch today to see if we are the right fit and how simple we can make the process.

What Constitutes a Commercial Property Valuation?

A commercial property valuation is an in-depth, formal analysis executed by a licensed professional. This process evaluates a property’s market value considering various factors like location, condition, and prevailing market trends. Often used for securing financing or resolving disputes among property owners, valuations provide a reliable, unbiased assessment of a property’s worth.

When might a commercial property valuation be used?

Most people who have a mortgage on a family home are familiar with the concept of a property valuation for the bank’s lending purposes. Valuations, however, can be sought for a wide range of reasons including, but not limited to:

• Determine what a property is likely to sell for if offered to the open market
• Suitability as security for finance applications
• Settle family estate or business disputes
• Establish potential tax liabilities such as CGT, GST, and transfer duty
• Insurance purposes
• Rating and taxation (Land tax for example)
• Rental determinations and assessments in accordance with the terms of a lease agreement

The Function of a Commercial Real Estate Appraisal

A commercial property appraisal provides an estimate (or opinion) from a licensed real estate agent or sales representative of what a property may sell for in the current market. It is important to remember that an appraisal is not to be taken as a valuation.

Offering valuable insights into a property’s potential selling price or rental income in the current market, appraisals assist property owners in strategising for sales or lease campaigns, providing a glimpse into the property’s market potential.

When might you want a commercial property appraisal?

• You are thinking of selling on the open market and would like to know an estimated sale price
• A tenant has given notice to vacate and you want a current rental estimate
• You require a market appraisal for a SMSF purposes
• A sale or lease transaction that is not arm’s length (ie the parties are related or know each other)
• You want want to determine whether to proceed with a potential investment 

Distinguishing Between Valuation and Appraisal

Valuations and appraisals differ mainly in their level of formality and the purposes they serve. While valuations are necessary for formal financial or legal processes, appraisals are more advisory, aiding in preliminary decision-making stages and to establish a potential market value if considering selling.

Certification: Valuations are carried out by certified valuers, whereas appraisals can be performed by a licensed and suitably experienced commercial real estate agent or sales representative.

Purpose: Valuations are important for formal proceedings like financing or resolving disputes involving property. Appraisals, however, are usually employed to assist with a sales or leasing strategy.

By understanding these critical distinctions, commercial property owners and investors can navigate the market more effectively, ensuring they make informed decisions.Perth Commercial Property prides itself on offering expert services tailored to the commercial real estate market’s unique needs.

If you require an insightful commercial property appraisal, our team is here to help you unlock your property’s full potential

Enquire about an appraisal

08 9443 2595

1. the strata manager and 
2. the commercial property manager

Let’s break it down.

Strata Manager: Navigating Shared Spaces and Community

Imagine a property with multiple units, or a shared complex like an apartment building or commercial shopping centre. This is where the strata manager takes the stage.

Their primary role revolves around ensuring the smooth operation of shared (common) facilities and harmonising the needs of property owners. From protecting the capital value of the building by coordinating reactive and proactive repairs and maintenance, managing insurance policies to enforcing bylaws and facilitating communication among owners, their responsibilities contribute to the cohesion of communal living or working spaces.

All the inhabitants of the strata are stakeholders and the strata manager works in the best interest of all stakeholders.

Commercial Property Manager: Orchestrating Property Investing Success in the Best interest of Investors

Now, let’s shift the focus to a broader horizon – your entire commercial property portfolio. Here, the commercial property manager steps in as the conductor of the symphony. Their duties encompass a wide spectrum, including marketing property for reletting, negotiating leases, ensuring legal compliance, managing rent collection and financial records, addressing tenant issues, resolving disputes, and overseeing property maintenance.

Their expertise spans the gamut of responsibilities required to optimise the performance of your commercial property’s financial performance and to protect, or enhance the capital value.

You are the primary stakeholder and the property manager looks after your best interests.

The Hidden Challenges of Property Ownership

While the allure of commercial property investment is undeniable, the challenges can sometimes be less evident. Juggling difficult tenant interactions, seemingly endless legal and administrative tasks, and the pursuit of timely rent collection – it can all become pretty overwhelming. This is where the strategic guidance of a property manager comes into play.

How a Property Manager Can Be Your Solution

Consider a property manager as your partner in navigating the complex landscape of commercial property ownership. Here’s how they can help:

•  Efficient Time Management: Delegate time-consuming property management tasks to professionals, freeing you to focus on strategic decisions and personal pursuits – like that summer Euro trip you’ve been planning!
•  Effective Tenant Management: Property managers are adept at handling tenant relations, diffusing conflicts, and keeping tenant behaviour in line with what’s expected.
• Streamlined Administrative Duties: From intricate lease agreements to legal compliance and financial record keeping, outgoings budgets & reconciliations, property managers excel at managing administrative intricacies, ensuring compliance and your peace of mind.
• Stress-Free Rent Collection: A property manager’s systematic approach to rent collection minimises rental arrears, maintaining a steady cash flow for your investments.
• Proactive & Reactive Maintenance Coordination: Identifying tenant vs owner maintenance is the first step to any successful repairs and maintenance strategy. Planning any proactive maintenance and getting ahead of necessary repairs protects the asset value, reduces vacancy and enhances the tenant experience.
• Strategic Decision Guidance: Drawing from their industry insights and experience, property managers provide guidance to help you make informed decisions that enhance your property’s value and overall portfolio performance. From the initial marketing of your listing, to leasing and helping you achieve the best possible return on investment – they have you covered.

Elevating Your Property Ownership Experience

Investing in commercial real estate asset management isn’t just about delegating tasks – it’s about elevating your property ownership experience. The strategic partnership formed with an experienced commercial & industrial property manager empowers you to overcome challenges, capitalise on opportunities, and achieve your property investment goals with confidence.

Partner with Perth Commercial Property

We understand the complexities of commercial property ownership. We’re here to create a tailored strategy that aligns with your investment goals. Our dedicated team of property managers bring extensive expertise and tenant management skills to the table, allowing you to navigate ownership seamlessly and unlock the full potential of your portfolio.

Discover the difference that professional commercial real estate asset management can make – get in touch to start your commercial property success story today.

Let’s delve into the reasons for the growing popularity of commercial property buyer’s agents in Perth.

Why Perth’s Market is Buzzing About Commercial Property Buyers Agents

It’s no secret that Perth’s commercial real estate investment scene is vibrant, drawing attention from a broad spectrum of investors. Assets soaring in popularity include industrial warehouses, childcare assets, medical/consulting, fast food, service stations and to an extent retail and office spaces. 

In June 2023 the Financial Review reported industrial rents were up on average 24.9 per cent over the past 12 months. Research conducted by CBRE also showed Perth has one of the lowest industrial vacancy rates in Australia at 0.4 per cent. Both factors have created a perfect storm for investors wanting to claim their slice of the pie.

Given the keen competition, limited commercial investment properties available and a decrease in new builds post COVID, having a seasoned professional at your side could be appealing. 

The advantages of partnering with a commercial property buyers agent

Expertise on Tap 

Commercial property buyer’s agents live and breathe property purchasing. They bring a wealth of knowledge about commercial real estate property investing and management, industry trends, and insights that the average investor may overlook. Commercial investing can be more complex than residential and having experience and expertise on your side may prove invaluable when it comes to thorough diligence and deal structure, and settlement.

Time Saving

Searching for the ideal property in a soaring market, particularly in hot sectors, can be time-consuming. Buyer’s agents can expedite this process by doing the legwork, ensuring investors are presented with properties that meet their criteria.

Access to Off-Market Deals: 

Some of the best commercial building property deals never make it to public listings. Well-connected buyer’s agents often have networks with commercial property managers and sales and leasing agents, granting them access to exclusive off-market opportunities.

Due Diligence

No two commercial properties are identical. A buyer’s agent can assist with comprehensive due diligence on both the property and its tenant. 

For example, if a commercial property is tenanted, a buyer’s agent should assess whether the current rental rate aligns with the market standard for similar assets, whether there is opportunity to improve and how this may impact the sale price. They may evaluate arrangements like a lease-back proposal if the seller’s business occupies the property, ensuring the lease terms are standard and legally vetted. They can also identify tenant-owned items pre-sale to prevent future ownership disputes. 

And we’re really only scratching the surface here. The thorough due diligence a buyer’s agent can provide can significantly save buyers both time and money in the long run.

Negotiation

Having an objective third party negotiate on your behalf can offer notable advantages, especially in a hot market where investors aim to ride the wave. A buyer’s agent can tailor advice to current market conditions, altering negotiation strategies between rising and declining markets. They can help secure the property on terms favourable to you, aligning with your overall investment strategy.

Deal completion

Negotiating up to a contract is one thing. Reaching a successful settlement post-negotiation can be a whole other story. Numerous potential hurdles could include due diligence findings, financing issues, incomplete documentation and unresolved property maintenance.  

Last-minute course corrections, especially in high-pressure, high-stakes situations involving multiple parties, require adept handling. Having experienced assistance from a commercial property buyers agent on your side could significantly ease navigation through these challenges towards a satisfactory settlement.

This all sounds great, so what are the risks?  

The rising demand for commercial property buyer’s agents in Perth has expanded available service offerings. However, many are from interstate agencies. The risk here is that they may lack the deep local market understanding that active, local commercial property management firms possess. 

A local agent’s ability to conduct real-time, in-person inspections is invaluable. They can identify issues often missed or impossible to identify in online adverts or Google searches.

For example in a strata complex, they could assess the condition of common areas not shown in listings. They could also gauge the impact of neighbouring tenants. Perhaps there is a mechanic using all the car bays or a food manufacturer with an odour that wafts through the property all day. They can also play an important role in assessing the general property condition. Verifying if the issues noted during building inspections have been addressed satisfactorily before settlement

These kinds of insights are difficult to obtain without boots on the ground.

Is a commercial property buyers agent right for you?

If you’re keen on delving into commercial or industrial property investment and management, feel free to reach out. While Perth Commercial Property doesn’t currently offer buyer’s agent services, we do provide pre-purchase inspections to buyers looking to appoint a dependable commercial property management agent for newly acquired assets.

The commercial property sector is dynamic, and to thrive, agents need to be agile to adapt to changing demands. On the other end of the spectrum, you may find property management no longer aligns to your desired service offering.

Perth Commercial Property recently expanded through the acquisition of a rent roll from a local boutique commercial real estate agency. The transaction was marked by its private nature, as well as fair and equitable commercial terms, all achieved without the use of a broker. On the back of this successful collaboration, we wanted to help clear the fog on what can be a taboo subject for agency owners and help you assess whether a rent roll sale is the right call for your business, and if so, how you might want to go about it.

So, why do real estate agents sell their rent roll in the first place?

Opportunity cost – what is your rent roll costing you?

Are you primarily a sales Agent that has found themselves swamped with PM duties?

It’s a common theme in the real estate sector. An individual finds success as a sales or leasing agent and makes the decision to launch their own agency. Property Management goes hand-in-hand with sales and you find yourself with a new service offering. You quickly pick up a few management’s and launch yourself into managing them with energy and enthusiasm… things are going really well! 

Fast forward a few years and the demands of juggling the management of a rent roll, staff, compliance, growth and of course your core sales and leasing duties are all starting to pile up. Somewhere along the line your purpose has blurred and it all feels a little too unmanageable.

What are you saying no to, or forced to forgo with so much time and resources allocated to property management? Have sales numbers slipped? Error rates climbing? Ho-hum service standards become the norm? Are you still enjoying the day-to-day of your Agency?

Our recent acquisition is a perfect example of the above scenario. The seller wanted to get out of property management and refocus on their core area of strength, sales and leasing. We were able to negotiate fair and reasonable terms and the sale was a huge success for all involved.

Succession planning

Highlighted by Macquaries survey results, succession planning should be a key consideration for principals approaching their golden years. Principals have often spent many valuable years investing in and growing their business. 

Don’t leave money on the table through lack of planning.

Whether you use a rent roll broker or prefer to engage directly with a buyer experienced in rent roll purchases such as Perth Commercial Property, selling a commercial property rent roll can be a strategic move offering several benefits if the time is right for you.

• Financial gain. 

Often the most immediate benefit. A well-maintained rent roll can be a highly valuable asset providing a cash boost that could be used to pay down debt, invest in other areas of the business, or take as profit. Shifting out properties that no longer serve, can reduce serviceability costs – improving your bottom line.

• Free time to focus on core strengths.

We all know managing a rent roll requires significant time and resources. By selling a rent roll that no longer aligns, a boutique agency can free up time and resources to focus on other areas of the business. Investing where your expertise shines or realising greater opportunities for growth.

•  Reduced risk. 

We operate in a cyclical industry influenced by various factors such as economic conditions, changes in legislation, and market demand. Selling a commercial property rent roll can help reduce exposure to these risks.

The decision to sell should be made carefully and with the right partner.

There are a number of key considerations:

• Sale multiple.

Rent rolls typically sell on a multiple of revenue per property

• Retention.

Retention of new clients/properties is key. In some circumstances if the buyer loses a client or property during a specified period (the retention period) then they are not required to pay for that property/client. This makes the quality of the buyer and their ability to professionally manage their Agency and the new properties critical. 

You have built a reputation and a service level that your landlords have grown to expect. Selecting the ideal partner for your rent roll sale is essential for all parties involved.

Trust is paramount, not only for the service quality the acquiring commercial agency can provide to your landlords and tenants but for your sale price. You will want to communicate your confidence in the buyer with your landlords and the tenants during the settlement and retention period. Partnering with an agency that shares your values, has a proven track record and commitment to exceptional customer service will aid this transition.  

Transparency and discretion are key to a smooth transaction.

Be transparent about your motivations for selling and your future aspirations. Potential buyers will be keen to understand these aspects, especially your plans within the industry.

Are you planning to remain in the industry and potentially become a competitor? Perhaps if you are getting out of property management altogether, you can agree on an ongoing referral relationship? 

Recognise that your future endeavours can influence a buyer’s stance on crucial sale elements like pricing, retention, and non-compete clauses.

Transparency and discretion ensure the landlords are communicated with appropriately and the vendor and purchaser are better able to transition the rent roll across.

Do you need a broker?

While rent roll brokers would argue a resounding yes, our recent acquisition was proof that private commercial rent roll sales are not only possible but can also be more efficient.

Selling privately eliminates the need for a formal marketing process, saving both time and money. The absence of broker involvement translated to zero broker fees and a streamlined transaction.

Our transactions are always transparent and upfront, allowing both parties to conduct independent due diligence. Recognising our shared values, personalised approach and long-standing property management team, our recent seller was confident in our ability to guarantee consistency and top-notch service to their commercial property landlords.

If you are struggling to find a buyer or are selling to a commercial property agency without experience in these transactions a broker may be a good call. 

At the end of the day rent roll sales shouldn’t be complicated or taboo. With the right partner, you can rest assured your landlords and tenants will be in good hands, and free up the resources needed to manage a portfolio that brings the most value to your business.

If you are considering what a rent roll sale would look like, no matter the size, we welcome an obligation-free and 100% confidential chat.

Feel free to contact Marc of Anna directly to discuss in more detail.