When you have found the commercial property that meets your business needs, it is highly recommended that you compare the price within your chosen locations. If you are satisfied with the sale price, then proceed to make a written offer to the seller. This will usually be submitted via the seller’s marketing agent.
The agent is required by law to forward your offer for the seller’s consideration. The agent will then be able to confirm your offer in writing to their client.
If the seller accepts your offer, it would be wise to make sure the property is withdrawn from the market to prevent the seller from negotiating with any other party on the property. This is called a lockout agreement (please refer to ‘Exchange of Contracts and Completion’ section).
If your offer is declined by the seller, try to negotiate further to build a mutually acceptable agreement. Identify the key markers for the seller. It might not just be the price. The ability to complete a transaction in a given time-frame will often tip the balance in your favour.
If you have applied for a commercial mortgage, you will need to have a written offer from the lender before committing yourself to buy. If you have a committed mortgage offer, knowing you are in a position to complete the transaction could help influence the decision of the seller.
Reclaiming Capital Allowances on Commercial Property