Commercial property

Commercial real estate agent for offices, industrial buildings, shops and investment properties

With commercial property, returns matter, not residential comfort. This guide shows how to determine rental value, what a realistic fee is and which eight criteria distinguish a good commercial real estate agent.

At a glance

Calculate using net initial yield, not gross initial yield: ownership costs are 12%–20% of gross rent.
The tenant's lease term directly affects the investment value.
Check the local environment plan before purchasing, changing use or subdividing.

Eight criteria for choosing a commercial real estate agent

Proven transactions in your segment (offices, industrial buildings, retail, healthcare, logistics).
Knowledge of the local business park and its vacancy rates.
Experience with ROZ model contracts and general provisions.
Access to a network of tenants, not just property portals.
A measurement report in accordance with NEN 2580 included as standard.
Rental value supported by comparable transactions based on rent excluding VAT and service charges.
Clear identification of tax considerations (VAT-taxable transfer, VAT adjustment period).
Transparent fees: a percentage of the sale price for sales, a percentage of the annual rent for lettings.

Selling or letting: the calculation

Gross initial yield = gross annual rent / total investment.
Net initial yield = (gross annual rent − owner's costs) / total investment.
Allow for owner's costs of 12%–20% of the gross rent.
Explicitly assess vacancy risk: location, ease of re-letting and marketability.

Measurement determines pricing: lettable floor area (VVO) versus gross floor area (BVO)

Commercial rent is quoted per m² of lettable floor area (VVO) per year, excluding VAT and service charges. The difference between lettable floor area (VVO) and gross floor area (BVO) can be 10% to 15%. Without a measurement report, you are comparing apples with oranges and effectively paying too much rent.

Legal and tax checks

Local environment plan and occupancy permits.
VAT-taxable transfer or letting and the VAT adjustment period.
Property transfer tax for non-residential properties.
Environmental and soil surveys for commercial sites.
Asbestos survey for buildings constructed before 1994.

Frequently asked questions

What exactly does a commercial real estate agent do?

A commercial real estate agent works with rental value per m² of lettable floor area, gross initial yield/net initial yield, lease term and permitted use rather than residential comfort. The contracts (ROZ templates) and tax aspects also differ.

What is a normal commission for commercial property?

For sales, often 1,4%–2,0% excluding VAT. For lettings, generally allow 10%–15% of the first year's rent.

Selling or letting: which generates more?

That depends on the net initial yield, vacancy risk and the remaining term of the tenant's lease. A property with a long-term lease is worth considerably more as an investment.

Why is the environmental plan so important?

It determines which uses are permitted. Hospitality, retail, storage and healthcare are not interchangeable; an incorrect assumption makes your business case worthless.

Commercial property valuation advice

Receive an indication of rental value and market value from participating commercial real estate agents.

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Participating commercial real estate agents

32 agencies specialising in industrial premises & warehouses or office space. Fees on request unless published by the agency.

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