Mistakes Business Owners Make About Commercial Property

Let’s unpack the most common errors and how to avoid them.

1. Short term VS Long term

Business owners are notorious for making quick decisions on a property because they know the owners, or it’s come up for sale/lease just down the road or they feel it meets the immediate needs of the business, failing to consider whether it’s the best site for future opportunities.

What if there’s a better site at a better price?

Have you considered growth potential? Although it’s a good problem to have, it is costly to outgrow your site and relocate

What to do instead:

• Choose a property that supports your future aspirations

• Research. You’re potentially spending millions - it’s worth the due diligence

• Ask a lot of relevant questions. Ask the council about future infrastructure in the area (could be positive or negative)  and ask other business owners and local business groups for information

2. Focusing Solely on Location

Yes, location matters—but it’s not everything. A prime location might not align with your business model, target audience, or operational needs. A beautiful storefront is useless if your customers can’t find parking, or if your suppliers struggle to access the site.

What to do instead:

   •    Assess the property holistically, including amenities, accessibility, and local business ecosystems. Don’t forget zoning impacts, parking and traffic at different times of the day (clearways, super tram stops).

3. Underestimating the Impact of Lease Terms

Many business owners gloss over lease agreements, focusing on monthly costs rather than the fine print. However, clauses around rent reviews, maintenance responsibilities, make-good clauses or termination rights can have long-term repercussions.

What to do instead:

   •    Engage a property advocate or lawyer to review the lease.

   •    Understand break clauses, rental increases, market reviews and tenant obligations.

4. Ignoring the Brand Implications

Your property doesn’t just house your business—it represents it. A dated, poorly maintained space sends a message to customers and employees that your business is stagnant or struggling.

What to do instead:

   •    Choose a property that aligns with your brand values.

   •    Prioritise spaces that show some pride and productivity for your team.

NOTE: If you’re leasing, consider how much of your fit-out goes toward the capital improvement of your landlord's property asset and what their contribution will be. In short, you don’t want to overspend on something someone else ultimately owns.

5. Treating Property as an Expense, Not an Asset

Many business owners view commercial property as just another overhead, rather than a strategic asset that can drive growth and profitability.

What to do instead:

   •    Recognise the potential ROI of investing in the right property. We always say the right property can do 50% of the heavy lifting for a business.

   •    Consider ownership where feasible, which builds equity and stability.

6. Failing to engage the professionals

Commercial property can be complicated, but many business owners try to go it alone. This often leads to missed opportunities, overpaying, or settling for less-than-ideal terms. I’ve seen this time and time again. 

What to do instead:

• At the very least, make sure you’ve engaged a lawyer that specialises in commercial real estate.

• Shameless plug: Partner with a commercial property advocate who understands the market, negotiates on your behalf, and aligns property solutions with your business goals

7. Overlooking Market Trends

Choosing a property without understanding the broader market trends—such as local business growth, consumer patterns, or industry shifts—can leave you stuck in a declining area or an obsolete space.

What to do instead:

   •    Research areas with potential for growth. There’s a lack of data when it comes to commercial property so if you’re not working with an advocate, be prepared to make a lot of phone calls and plenty of conversations to get the research you need.

   •    Stay informed about market demands and how they intersect with your industry. Go to industry networking events, and speak with others in your industry.

Are you ready to make smarter property decisions?

Working with a professional advocate ensures you get it right. I’m going to go a step further and highlight working with advocates with extensive experience in business spaces as well as commercial investment properties. That’s what we specialise in. Sourcing and securing a site that will perform well for your business (it will do the heavy lifting) and it will be a site that performs well as a long-term investment asset.

Don’t hesitate to call us - our initial consultative sessions are at no charge to help inform you - and us to determine if and where we can help.

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