The building is the easy part
If you have bought a house before, you know how to judge a building. You walk through it, you get a pest and building report, you make a call.
Commercial does not work that way. Most of the value sits in the lease, and the lease is a long document that is easy to skim and expensive to skim.
Two properties can look identical and be priced the same. One has seven years left with a tenant who has traded there for a decade. The other has one year left with a tenant nobody checked. They are not worth the same amount, and only one of them is on the contract in front of you.
This checklist is the list we work through before we recommend anything. We are giving it away because a buyer who knows what to ask makes better decisions, whether or not they ever hire us.
Six sections. Every question we ask.
Each section gives you the questions, what a good answer looks like, and the answers that should stop a purchase.
The lease
Term, options, rent reviews, and what happens at the end.
“How does the rent go up, and who decides?”
The tenant
Who pays the rent, how long they have traded, and what a departure would cost you.
“If they left tomorrow, who replaces them?”
Outgoings
Which running costs come back to you and which you carry yourself.
“What is the net return, not the advertised one?”
The building
Condition, compliance, essential services, and the repair bill you inherit.
“What has been deferred, and for how long?”
Zoning and planning
What the site can be used for now, and what else it could be used for.
“Who else could occupy this if the tenant left?”
The exit
Who buys this from you later, and what has to be true for them to pay more.
“What makes this worth more in ten years?”
The same purchase, two ways
Without the questions
- The yield looks strong, so you move quickly.
- The tenant leaves in eighteen months.
- Half the outgoings turn out not to be recoverable.
- It sits empty for months while you pay the loan.
With the questions
- You know the tenant, the term and the reviews before you offer.
- You know the real return after unrecoverable costs.
- You have priced in a vacancy, so one would not break you.
- You know who buys it from you, and why.
Both buyers looked at the same property. Only one of them read the lease properly.
Three steps
Ask for the documents early
The lease, the outgoings history and the building reports. Waiting on paperwork is the most common reason due diligence runs late.
Work through the six sections
Print it or fill it in on screen. Anything you cannot answer is a question for the selling agent, not something to leave blank.
Add up what you found
The last page helps you decide whether what you found changes the price, changes the terms, or ends the deal.
No call. No phone number. No sequence.
You give us an email address and we send you a PDF. That is the whole transaction.
If you want to talk afterwards, there is a link at the bottom of this page. If you do not, you will not hear from us about it.
Before you download
What is commercial property due diligence?
It is the checking you do between agreeing on a price and being committed to buy. For commercial property it covers the lease, the tenant, the outgoings, the building, the zoning and the exit. It is more involved than residential, because most of the value sits in the lease rather than the building.
How long does commercial due diligence take in Australia?
Usually two to four weeks, depending on how quickly the seller supplies the lease, the outgoings history and the building reports. Ask for those documents early. Waiting on paperwork is the most common cause of delay.
Do I need a solicitor as well as this checklist?
Yes. The checklist tells you what to look for and what should stop a purchase. A property solicitor gives you legal advice on the contract and the lease. They do different jobs and you want both.
Is it really free?
Yes. Enter your email and it arrives as a PDF. No phone number, no call, and no follow-up sequence unless you ask for one.
Does it work for every type of commercial property?
The six sections apply to retail, industrial, office, medical and childcare. Some questions matter more for some types — the operator matters most in childcare, the fitout matters most in medical — and the checklist says so where it applies. Our commercial buyers agent page covers the differences between the five types.
Get the checklist
Six pages, 42 questions, print friendly. Free.
Get the free checklistAlready know you want to talk it through? Book a free 20-minute call · or call 02 5022 5450, Mon to Fri 9am to 5pm.
Written by Rasti Vaibhav, CFA Charterholder and Founder of Get RARE Properties. Last updated 6 August 2026. Get RARE Properties is licensed in NSW, VIC and QLD and is a member of PIPA, REINSW, REIV, REIQ and REIA. This page is general information and does not take your personal circumstances into account. It is not legal advice — use a property solicitor for the contract and the lease.
Suite 5.03, 309 George Street,
Sydney NSW 2000
Sydney NSW 2000
Ground Floor, 161 Collins St,
Melbourne, VIC 3000
Melbourne, VIC 3000
