Before you commit to a commercial property, read this.
The Commercial Property Due Diligence Checklist is a free guide from Impacta Commercial Advocates for business owners buying a property to run their business from. It covers the five areas where due diligence most often breaks down: the building, planning and use, tenure and title, the true costs, and your exit. It takes about 10 minutes to read.
Most buyers don't know what they don't know until after they've signed. This checklist shows you what to look for, why it matters, and when to stop and get expert advice before you exchange.
Send me the checklistOn its way
Check your inbox for the download link (it can take a minute or two). While you wait: if you're already looking at a specific property, jump to the sections below that make you pause. That's usually where the real question is hiding.
Commercial property due diligence is the checking you do before you commit to buy: confirming the building's condition, what you are legally allowed to do there, what's on the title, what it will really cost to own, and how easily you could sell or lease it later.
For owner-occupiers, the stakes are higher than for investors. You're not just buying an asset; you're choosing the building your business will depend on. A problem an investor could price in can stop you from trading, fitting out or expanding.
Due diligence doesn't replace your solicitor, accountant, building inspector or town planner. It helps you ask them the right questions, and spot the issues that fall between their roles.
The checklist is built around five areas. Each one below covers what to look for and why it matters. The full PDF adds the warning signs that should make you pause, and the point where you should stop and get a specialist report before exchanging.
01
Check the structure, the roof, the services and whether the space physically works for your operation. The real risks sit above, below and behind the walls, and deferred maintenance becomes your problem on settlement.
Non-compliant mezzanines, informal extensions and major elements near the end of their life (such as air conditioning) all affect valuation and resale. Banks and insurers don't recognise illegal floor area, so check that the marketed floor area matches the documentation.
02
Not necessarily. Just because a business is operating there doesn't mean yours can. Confirm the exact permitted uses under the zoning, not the ones that are "generally acceptable".
Zoning and change of use: wrong zoning can stop or compromise your operation or expansion, and council approval should be confirmed, never assumed.
Overlays: planning overlays can limit signage, trading hours or alterations.
Car parking: check required parking against what is provided. Shortfalls can block permits or expansion, and informal or shared parking arrangements may not bind future owners.
Easements: drainage, access and service easements can stop you building over them, and height or setback limits can cap future expansion.
03
Title issues don't feel urgent until they stop you building, trading or refinancing.
Shared services and access: shared meters, plant or infrastructure, and staff or delivery access across another title, commonly lead to disputes. If responsibility isn't written down, assume it will cause conflict.
Strata: by-laws can limit your hours, noise or alterations. Review at least three years of owners corporation minutes, particularly for upcoming special levies. Watch for one owner dominating decisions.
Unregistered rights: informal arrangements don't protect you legally. If your access depends on goodwill, that's a risk.
04
The purchase price is only the opening number. As an owner, costs shift from the landlord to you.
Outgoings: land tax, council rates, insurance, compliance costs and strata levies beyond the admin fund. These hit cash flow immediately.
What lenders scrutinise: building condition relative to the loan term, how marketable the asset is, and how reliant your business is on the site. Banks lend against resale, not your passion for the property.
Capital costs in the first 24 months: works deferred by the vendor, hidden services limits and compliance upgrades triggered by your fitout. Upgrades cost more once walls are open.
05
Even owner-occupiers need an exit plan. Ask who would buy this from you later, and whether it could be leased if your business moves on.
Broad appeal: a property that suits many businesses holds value better than one that only suits yours. Location fundamentals outlast any business cycle.
Liquidity red flags: low sales volumes in the precinct, scarce comparable sales, or dependence on a single use type all shrink the buyer pool.
Over-specialisation: fitout that's hard to repurpose, heavy industry-specific compliance or branding built into the building. Strip-out costs come off your sale proceeds.
The full checklist includes the "Pause if" warning signs for every item, and a "Stop and check" test for each area with the specialist reports to order and their typical costs.
Get the full checklistThe five areas apply anywhere in Australia, but the paperwork differs by state. In Victoria, the vendor must provide a Section 32 vendor statement before you sign, covering title, zoning, outgoings and other disclosures. Read it alongside this checklist and have your solicitor or conveyancer review it before you commit.
In other states, disclosure rules and contract timelines vary, so confirm with a local property lawyer what the vendor must provide and how long you have to complete your checks. Impacta Commercial Advocates works with business owners on purchases nationally.
If you're buying commercial property to run your business from, generic advice doesn't fit. This checklist is written for growth-stage business owners, medical and allied health practices, and not-for-profit organisations making that decision, not for investors chasing yield.
It's useful at every stage: while you're researching, when you're actively looking, or when you have a specific property in mind and need to know which questions to ask before you exchange.
Buying a medical or allied health property? Read the Medical Property Due Diligence Guide, which covers the compliance, fitout and patient flow risks this checklist doesn't.
Get the free checklistFounder and Principal, Impacta Commercial Advocates
Vicki Likoudis is the Founder and Principal of Impacta Commercial Advocates, a Melbourne-based commercial property advocacy firm working nationally. For over a decade she has advised business owners, non-profits and boards through commercial property decisions. Impacta Commercial Advocates acts only for its clients, never for selling agents or developers.
Before founding the firm, Vicki built and exited three businesses of her own and served four years as the voluntary President of a Melbourne industry association representing more than 750 businesses. She knows first hand what a property decision means for a business owner. Impacta Commercial Advocates was formerly known as True North Buyers Advocates.
It means checking five things before you commit: the building's physical condition and services, whether your use is permitted under the zoning, what's registered on the title (easements, strata by-laws, shared services), the full cost of owning it, and how easily you could sell or lease it later. Most of it is done through inspections, searches and specialist reports.
In most cases, yes. Visible structural movement, active water damage, an older roof or a building over 15 years old without maintenance records are all signs you need one. A building consultant's report that puts a dollar figure on deferred maintenance typically costs $2,500 to $5,000, and it can be used to negotiate the price.
Check the zoning and the exact permitted uses, any planning overlays, and whether the site meets car parking requirements for your use. If your business type isn't clearly listed, or the vendor mentions "existing use rights", get a planning certificate and a town planner's review before you exchange. This typically costs $1,200 to $2,000.
Outgoings are the ongoing costs of owning the property: council rates, land tax, insurance, compliance and maintenance costs, and strata levies if it's part of a strata scheme. When you buy the building you occupy, these move from the landlord to you. If they exceed about 3% of the purchase price each year, look more closely before committing.
The lender will base your loan on the lower valuation, so you'll need to find the gap, renegotiate the price or walk away if your contract allows. A low valuation is also a signal to review the building's condition and resale appeal. Read more in Commercial Valuation Below Your Offer: What Now?
Review at least three years of owners corporation minutes, the maintenance fund balance and any history of special levies. Irregular levy spikes usually point to underfunded maintenance. A strata report typically costs $600 to $1,200 and is worth ordering, especially for schemes over 10 years old.
A commercial buyers advocate acts only for you, not the vendor. They help you find and assess properties, coordinate due diligence and negotiate the price and terms. For owner-occupiers, the value is usually in avoiding the wrong building, not only in the price saved. Book a discovery call to talk it through with Impacta Commercial Advocates.
Most commercial property mistakes don't come from bad decisions. They come from missing information, assumptions made under pressure, or advice that wasn't designed for owner-occupiers.
You don't need to rush the next step. You just need to make sure it's informed.
Last reviewed September 2026 by Vicki Likoudis, Founder and Principal, Impacta Commercial Advocates. This checklist is general information only and isn't legal, financial or building advice.
