Practical Guidance for Working with Commercial Property Agents

Commercial real estate decisions carry long-term financial and operational consequences. 

Whether you are leasing, buying, selling or investing, the quality of advice you receive - and the questions you ask - can significantly affect how a decision performs over time.

The guidance below is intended to help landlords, tenants, investors and agents navigate the commercial property process more effectively and avoid common, costly oversights.

This is the standard we hold ourselves to at Chess Properties

Guidance for Landlords

1. Choose agents with asset-class expertise: Commercial and industrial property requires specialist knowledge. Ensure your agent has proven experience in your specific asset class- whether industrial, retail or office - rather than a general residential background.
2. Clarify expectations upfront:  A clear mandate should define target tenants, lease parameters, marketing strategy, timelines and reporting expectations.
3. Request transparent reporting: Professional agents provide regular updates on viewings, market feedback and negotiations without prompting.
4. Ask about off-market demand: Established commercial agents often have active tenant requirements before a property is formally listed.
5. Assess tenant–asset fit, not just occupancy: A tenant that is misaligned with the building can increase wear, maintenance costs and future vacancy risk, even if rental income looks attractive initially.
   

Guidance for Tenants and Business Occupiers

1. Prioritise local area expertise: An agent familiar with local business parks, zoning regulations, infrastructure capacity and municipal planning can advise on long-term suitability - not just availability.
2. Define non-negotiables early: No property is perfect. Clearly identify must-haves (such as size, power supply, access, ceiling height or lease duration) and remain flexible on secondary preferences.
3. Understand lease terms fully: Ensure clarity on escalation rates, deposits, maintenance responsibilities, operating costs, utilities and municipal charges before committing.
4. Confirm infrastructure suitability: Beyond size and rent, ensure the property supports your operational needs, including power supply, access for deliveries, staff movement and service reliability.
5. Consider lease flexibility as your business evolves: Ask how escalation structures, renewal options and exit clauses will affect your ability to adapt over time.
   

Guidance for Buyers and Investors

1. Verify credentials and compliance: All commercial property practitioners must be registered with the PPRA and hold a valid Fidelity Fund Certificate.
2. Assess track record and experience: Ask about previous transactions in similar asset classes or locations and request references where appropriate.
3. Understand the full cost of ownership: Beyond the purchase price, consider transfer duties, maintenance requirements, tenant risk, vacancy exposure and broader market dynamics.
4. Understand location resilience, not just yield: Investigate how the surrounding node is evolving - infrastructure, access, tenant demand and competing developments all affect long-term performance.

Guidance for Sellers and Landlords Looking to Exit

1. Clarify the valuation approach: Understand whether pricing is based on income yield, comparable sales, development potential or a combination thereof.
2. Review the marketing strategy: Ask how the property will be marketed, including online platforms, investor databases and broker networks.
3. Protect your interests with a written mandate: Ensure commission structures, exclusivity, scope of service and timelines are clearly documented before listing.
4. Timing and positioning matter as much as price: Market conditions, tenant profile and lease structure can significantly influence buyer appetite and achievable value.
   

Guidance for Leads and Residential Agents Referring Commercial Deals

1. Partner with a specialist commercial firm: Commercial property involves different lease structures, zoning considerations and tenant dynamics. A specialist partner ensures your client is well advised.
2. Formalise referral arrangements: Referral agreements should clearly outline fee structures and protect both your client relationship and professional standing.

Final Considerations

Commercial real estate involves trade-offs. Be cautious of agents who promise guaranteed outcomes or “perfect” solutions.

Always consult appropriate legal, financial and tax professionals before signing lease or sale agreements.

Above all, choose agents who act as long-term partners - not one-off dealmakers.

Commercial property decisions age over time. A deal that looks acceptable today may become restrictive or costly in future. Always consider how decisions will hold up in three to five years.

At Chess Properties, this is the standard we hold ourselves to.

Chess Properties — Make the Right Move.