Selling commercial property in Australia is rarely straightforward. The tax obligations alone can catch experienced owners off guard, and poor timing can cost you far more than a broker's commission. Whether you own an office, retail tenancy, warehouse, or mixed-use property, this guide covers what you need to understand before you go to market in 2026.

What Makes Commercial Property Sales Different From Residential

The rules governing residential sales don't carry over cleanly to commercial. GST, depreciation clawback, and capital gains tax all interact in ways that can materially affect your net proceeds. Buyers are also more sophisticated — they run yield calculations, scrutinise lease terms, and often have acquisition criteria tied to specific finance structures or portfolio strategies.

Getting across these differences before you list isn't optional. It directly shapes how you price the property, how you structure the deal, and which buyers you go after.

Capital Gains Tax on Commercial Property in Australia

When you sell commercial property in Australia, any profit above your cost base is subject to capital gains tax (CGT). The cost base includes the original purchase price, acquisition costs such as stamp duty and legal fees, capital improvements made during ownership, and certain holding costs.

The 50 Percent CGT Discount

Hold the property for more than twelve months and you may be eligible for the 50 percent CGT discount — but only if you're an individual or trust. Companies don't receive this discount. That distinction matters if your property sits in a corporate structure, which is common among SME owners who purchased commercial premises through a company or SMSF.

Small Business CGT Concessions

If the property is used in an active business and you meet the relevant turnover or net asset value thresholds, you may qualify for small business CGT concessions under the Tax Act. These can include a further 50 percent reduction, a 15-year exemption, or the ability to roll gains into a superannuation contribution. The rules are complex, and you'll want advice from a tax professional before factoring any of these into your sale planning.

Depreciation Recapture

If you've claimed depreciation deductions on the property's plant and equipment or building structure over the years, the ATO may require you to include some of that amount in your assessable income when you sell. It's a detail that catches many sellers off guard — particularly those who haven't modelled their tax position before going to market.

GST and the Going Concern Exemption

Commercial property transactions are generally subject to GST unless an exemption applies. The most commonly used is the going concern exemption, which applies when the property is sold as a fully tenanted investment with everything necessary to continue the business of leasing.

Both parties must agree in writing that the sale is a going concern, and the buyer must be registered for GST. If those conditions aren't met, the seller may be required to remit 10 percent GST on the sale price — a significant hit to your net position.

Vacant commercial property doesn't qualify for the going concern exemption. If your property is partially tenanted or the lease is expiring close to settlement, you need specific advice on how GST will apply before you sign anything.

Timing Your Sale: What the Market Looks Like in 2026

Getting the timing right means reading both macro conditions and the specifics of your asset.

Interest Rate Environment

The rate cycle has a direct effect on commercial property yields and, by extension, on what buyers are willing to pay. When borrowing costs are elevated, buyers apply higher yield requirements, which compresses the price they'll accept for a given income stream. As rates stabilise or ease, that dynamic reverses. Knowing where the cycle sits when you go to market is part of pricing your property correctly.

Lease Expiry and WALE

Weighted average lease expiry (WALE) is one of the most scrutinised metrics in commercial property due diligence. A property with a long WALE — say five or more years with a creditworthy tenant — commands a premium. A property with a lease expiring in twelve months is priced differently and attracts a different buyer profile, typically an owner-occupier rather than a passive investor.

If your tenant's lease is approaching expiry, you have a genuine choice: negotiate a renewal before selling to protect your price, or accept that your buyer pool will narrow. Neither path is wrong, but it should be a deliberate decision, not something that happens by default.

Seasonal Patterns

Commercial property transactions in Australia tend to cluster in the first and third quarters of the calendar year. Buyer activity drops noticeably between late November and late January. If you want to complete a sale within a twelve-month window, listing in February or March gives you the best chance of running a competitive process before the mid-year slowdown.

What a Specialist Commercial Property Broker Actually Does

A general real estate agent can list a commercial property. A specialist broker does something different.

The difference shows up in three areas: pricing accuracy, buyer access, and process management.

Accurate Pricing From the Start

Overpricing commercial property is a common and costly mistake. A property that sits on the market for six months accumulates a stigma that buyers notice and use against you. A specialist broker uses comparable sales data, yield analysis, and a current read on buyer appetite to arrive at a price that attracts genuine offers without leaving money on the table.

At Everest Commercial Property & Business Brokers, we combine economic rationale with market dynamics when preparing a property appraisal. That means looking at what the asset is worth in the current rate environment — not what the owner hopes it's worth.

Buyer Access That Goes Beyond the Listing Portals

Putting a property on a portal is a starting point, not a strategy. The most motivated buyers often aren't browsing listings. They're investors with specific criteria who've already told a broker what they want. They're Asia-Pacific buyers looking for Australian commercial assets as part of a broader investment or migration strategy. They're owner-occupiers who've been waiting for the right property in a specific suburb.

We maintain an active buyer network that includes cross-border buyers from the Asia-Pacific region — a segment that no major domestic franchise brokerage has meaningfully optimised for. That buyer pool can make a real difference to your outcome, particularly for properties in the $1 million to $5 million range where institutional buyers are absent and the right individual buyer drives the price.

Process Management and Confidentiality

Commercial property sales involve a significant amount of documentation: lease agreements, outgoings schedules, building reports, title searches, GST structuring, and settlement coordination. Managing this across multiple parties introduces coordination risk. A single point of contact who owns the process end-to-end reduces that risk and keeps the transaction moving.

For sellers who are also operating a business from the property, confidentiality matters. We use NDAs and staged information release so that sensitive details about your tenancy, your business, or your financial position are only disclosed to qualified buyers at the right stage of the process.

5 Questions to Ask Before You List

Before engaging any broker or going to market, work through these:

  1. What is your cost base? Have your accountant confirm the full figure, including acquisition costs and capital improvements.
  2. What is your GST position? Is the property tenanted in a way that supports a going concern sale?
  3. What is your WALE? Know your lease expiry dates and whether a renewal before sale would improve your price.
  4. Who is your target buyer? Owner-occupier, investor, or cross-border buyer? The answer shapes your pricing and marketing approach.
  5. What is your net proceeds target? Work backwards from what you need after tax — not just the headline sale price.

Working With a Broker Who Understands Both Sides

Many commercial property owners also run a business from their premises. When you sell the property, you may also be exiting the business — or you may be selling the property separately while continuing to trade. These scenarios have different structures, different tax treatments, and different buyer profiles.

We work across both commercial property transactions and SME business sales. That means we can advise on whether a combined sale or a sequential sale serves your interests better, and we can manage both processes without requiring you to coordinate between separate advisers.

If you're considering selling commercial property in Australia and want to understand your options before committing to a strategy, speak with us at everestcpbb.com.au.

FAQs

Do I pay GST when I sell commercial property in Australia?
Generally, yes — commercial property sales are subject to GST at 10 percent. However, if the property is sold as a going concern, meaning it is fully tenanted and everything necessary to continue the leasing business is included, the going concern exemption may apply. Both parties must agree in writing and the buyer must be GST-registered. Confirm your position with a tax adviser before signing a contract.

How is capital gains tax calculated on a commercial property sale?
CGT is calculated on the difference between your sale proceeds and your cost base. The cost base includes the purchase price, acquisition costs, capital improvements, and certain holding costs. If you've held the property for more than twelve months as an individual or trust, you may be eligible for the 50 percent CGT discount. Companies do not receive this discount.

What is the going concern exemption and when does it apply?
The going concern exemption removes GST from a commercial property sale when the property is sold as a fully operational investment — typically a tenanted property where all the elements needed to continue the business of leasing are transferred. Vacant properties and properties with leases expiring close to settlement often don't qualify.

How does lease expiry affect the sale price of commercial property?
A longer WALE generally supports a higher price because it gives the buyer a predictable income stream. A short or expiring lease narrows your buyer pool to owner-occupiers and repositioning investors, who typically pay less than passive yield-seeking investors. Renewing a lease before selling can be a straightforward way to improve your outcome.

What does a specialist commercial property broker do that a general agent does not?
A specialist broker brings yield-based pricing analysis, access to an active buyer network beyond listing portals, and experience managing the documentation and due diligence specific to commercial transactions. For properties with cross-border buyer potential, a specialist with Asia-Pacific networks can reach buyers that a domestic-only agent simply won't.

When is the best time of year to sell commercial property in Australia?
The first and third quarters of the calendar year tend to see the strongest buyer activity. Listing in February or March gives you the best chance of running a competitive process before the mid-year slowdown. The period from late November to late January is typically quieter and is generally not the right time to launch a new commercial listing.

Should I sell my commercial property and my business at the same time?
It depends on your tax position, your buyer pool, and your personal goals. A combined sale can be attractive to owner-occupiers who want both the premises and the operating business. A sequential sale — property first or business first — may produce a better outcome in other circumstances. This is a decision that benefits from advice from a broker who understands both transaction types, not just one.

Selling commercial property in Australia involves more moving parts than most owners anticipate. Tax structuring, lease management, buyer targeting, and process coordination all affect your final outcome. The earlier you get these elements right, the stronger your position when you go to market.

If you're ready to understand what your commercial property is worth and what a sale process would look like, speak with our team at Everest Commercial Property & Business Brokers.