Selling commercial real estate has never been a simple transaction — but in today’s environment, the margin for error is significantly smaller than it was just a few years ago. Capital is more selective, underwriting standards are tighter, and buyers are more disciplined about risk.
While the fundamentals of selling commercial property remain the same, the consequences of missteps now surface faster and last longer. Owners who approach a sale without a clear understanding of pricing mechanics, buyer behavior, and operational exposure often discover issues late in the process — during due diligence, financing, or renegotiation.
Below are six of the most common questions owners ask when preparing to sell commercial real estate, reframed through a 2026 lens.
Editor’s Note: This article was originally published in 2023 and has been updated to reflect current commercial real estate market conditions, underwriting standards, and buyer evaluation practices relevant to 2026.
1. What are the typical commission rates for commercial properties?
Commercial real estate commissions vary based on asset type, location, deal complexity, and market conditions. In most cases, commissions range between 5–7% of the sale price, with lower percentages often applied to higher-value transactions, particularly those exceeding $3 million.
That said, the commission should not be evaluated in isolation. The more relevant question for owners in 2026 is how a broker’s strategy, exposure, and execution affect net proceeds and certainty of close.
A lower commission does not necessarily translate into a better outcome if the property is mispositioned, underexposed, or improperly vetted against buyer financing constraints. In tighter capital markets, execution risk can outweigh fee savings.
2. What factors determine the value of a commercial property?
Commercial property value is influenced by a combination of physical, financial, and market-driven factors, including:
- Location and submarket dynamics
- Property size and functional layout
- Condition and deferred maintenance
- Zoning and permitted uses
- Replacement cost
- Existing and projected rental income
- Market capitalization rates
In addition, ongoing interest rate volatility has materially tightened underwriting standards. Buyers are increasingly stress-testing debt service coverage, exit capitalization rates, and refinance assumptions to account for higher and less predictable borrowing costs. This has reduced tolerance for aggressive pro formas and placed greater emphasis on in-place income, lease rollover risk, and the timing of capital expenditures.
Valuation today is less about headline numbers and more about how confidently a buyer can forecast performance under conservative assumptions—particularly in a financing environment where capital costs can change rapidly.
3. How long does it take to sell a commercial property?
The timeline for selling a commercial property varies widely and is influenced by:
- Asset type and location
- Property condition
- Market liquidity
- Financing availability
- Buyer pool depth
Even well-positioned properties often require several months from listing to closing. In higher interest rate or constrained lending environments, transaction cycles tend to extend as buyers navigate underwriting, equity requirements, and lender approvals.
Additionally, Sellers have been slow to adjust pricing to reflect higher interest rates. Buyers are increasingly reluctant to transact where leverage is negative or cash-on-cash returns trail the cap rate, which further narrows the pool of executable offers.
4. Can a residential agent sell my commercial property in Florida?
Florida issues a single real estate license, meaning residential agents are legally permitted to sell commercial properties. The more important question is whether they should.
Commercial and residential real estate differ fundamentally in valuation, marketing, buyer motivations, and transaction mechanics. Residential buyers may prioritize schools or neighborhood amenities, while commercial buyers focus on ceiling heights, loading access, zoning, and income stability.
There is no centralized MLS equivalent for commercial real estate, and effective exposure often requires specialized platforms, targeted outreach, and an understanding of capital markets.
While some residential agents may successfully handle smaller neighborhood assets within their core market area, owners should evaluate an agent’s commercial transaction history, asset-class experience, and buyer network before proceeding, particularly when choosing to work with a broker who specializes in selling commercial property.
5. Are all commercial real estate agents the same?
Not all commercial real estate agents operate the same way. Some function as generalists, while others specialize in specific asset classes such as retail, office, industrial, land, or multifamily.
As asset complexity and value increase, specialization becomes more important. Agents with deep experience in a particular asset class tend to better understand buyer expectations, underwriting sensitivities, and market-specific risks.
In 2026, when buyers are more selective and diligence is more rigorous, alignment between asset type and broker expertise can materially affect both pricing outcomes and execution certainty.
6. How is AI influencing the commercial property sale process?
While artificial intelligence is not replacing brokers, it is increasingly shaping how buyers evaluate opportunities.
AI-driven tools are now commonly used to:
- Benchmark pricing across comparable assets
- Analyze operating expenses and income trends
- Flag inconsistencies during underwriting
- Accelerate diligence and screening processes
As a result, information gaps, unclear narratives, or operational inefficiencies are identified earlier in the process. Properties that lack clean data or coherent positioning may face longer negotiations or price adjustments.
At the same time, AI remains dependent on reported and structured data. Much of the intelligence that drives real-world deal execution—particularly hyper-local market dynamics, landlord behavior, off-market activity, concession norms, and buyer or tenant motivations—is never captured on any platform. This is where experienced brokers continue to play a critical role, translating unreported market knowledge into context, strategy, and positioning that technology alone cannot replicate.
For owners, this means preparation matters more than ever. A well-documented, transparently positioned asset aligns better with how modern buyers evaluate risk — and reduces friction during the sale process.
Final Thoughts
Selling commercial real estate has always required strategic planning, but today’s environment rewards discipline, clarity, and informed decision-making. Understanding how pricing, timing, expertise, and modern evaluation tools intersect allows owners to approach a sale with greater confidence and fewer surprises.
By addressing these considerations early, owners place themselves in a stronger position to navigate the process and achieve outcomes aligned with their long-term goals.
6 FAQ for Those Who Want to Sell Their Commercial Real Estate
Selling commercial real estate has never been a simple transaction — but in today’s environment, the margin for error is significantly smaller than it was just a few years ago. Capital is more selective, underwriting standards are tighter, and buyers are more disciplined about risk.
While the fundamentals of selling commercial property remain the same, the consequences of missteps now surface faster and last longer. Owners who approach a sale without a clear understanding of pricing mechanics, buyer behavior, and operational exposure often discover issues late in the process — during due diligence, financing, or renegotiation.
Below are six of the most common questions owners ask when preparing to sell commercial real estate, reframed through a 2026 lens.
Editor’s Note: This article was originally published in 2023 and has been updated to reflect current commercial real estate market conditions, underwriting standards, and buyer evaluation practices relevant to 2026.
1. What are the typical commission rates for commercial properties?
Commercial real estate commissions vary based on asset type, location, deal complexity, and market conditions. In most cases, commissions range between 5–7% of the sale price, with lower percentages often applied to higher-value transactions, particularly those exceeding $3 million.
That said, the commission should not be evaluated in isolation. The more relevant question for owners in 2026 is how a broker’s strategy, exposure, and execution affect net proceeds and certainty of close.
A lower commission does not necessarily translate into a better outcome if the property is mispositioned, underexposed, or improperly vetted against buyer financing constraints. In tighter capital markets, execution risk can outweigh fee savings.
2. What factors determine the value of a commercial property?
Commercial property value is influenced by a combination of physical, financial, and market-driven factors, including:
In addition, ongoing interest rate volatility has materially tightened underwriting standards. Buyers are increasingly stress-testing debt service coverage, exit capitalization rates, and refinance assumptions to account for higher and less predictable borrowing costs. This has reduced tolerance for aggressive pro formas and placed greater emphasis on in-place income, lease rollover risk, and the timing of capital expenditures.
Valuation today is less about headline numbers and more about how confidently a buyer can forecast performance under conservative assumptions—particularly in a financing environment where capital costs can change rapidly.
3. How long does it take to sell a commercial property?
The timeline for selling a commercial property varies widely and is influenced by:
Even well-positioned properties often require several months from listing to closing. In higher interest rate or constrained lending environments, transaction cycles tend to extend as buyers navigate underwriting, equity requirements, and lender approvals.
Additionally, Sellers have been slow to adjust pricing to reflect higher interest rates. Buyers are increasingly reluctant to transact where leverage is negative or cash-on-cash returns trail the cap rate, which further narrows the pool of executable offers.
4. Can a residential agent sell my commercial property in Florida?
Florida issues a single real estate license, meaning residential agents are legally permitted to sell commercial properties. The more important question is whether they should.
Commercial and residential real estate differ fundamentally in valuation, marketing, buyer motivations, and transaction mechanics. Residential buyers may prioritize schools or neighborhood amenities, while commercial buyers focus on ceiling heights, loading access, zoning, and income stability.
There is no centralized MLS equivalent for commercial real estate, and effective exposure often requires specialized platforms, targeted outreach, and an understanding of capital markets.
While some residential agents may successfully handle smaller neighborhood assets within their core market area, owners should evaluate an agent’s commercial transaction history, asset-class experience, and buyer network before proceeding, particularly when choosing to work with a broker who specializes in selling commercial property.
5. Are all commercial real estate agents the same?
Not all commercial real estate agents operate the same way. Some function as generalists, while others specialize in specific asset classes such as retail, office, industrial, land, or multifamily.
As asset complexity and value increase, specialization becomes more important. Agents with deep experience in a particular asset class tend to better understand buyer expectations, underwriting sensitivities, and market-specific risks.
In 2026, when buyers are more selective and diligence is more rigorous, alignment between asset type and broker expertise can materially affect both pricing outcomes and execution certainty.
6. How is AI influencing the commercial property sale process?
While artificial intelligence is not replacing brokers, it is increasingly shaping how buyers evaluate opportunities.
AI-driven tools are now commonly used to:
As a result, information gaps, unclear narratives, or operational inefficiencies are identified earlier in the process. Properties that lack clean data or coherent positioning may face longer negotiations or price adjustments.
At the same time, AI remains dependent on reported and structured data. Much of the intelligence that drives real-world deal execution—particularly hyper-local market dynamics, landlord behavior, off-market activity, concession norms, and buyer or tenant motivations—is never captured on any platform. This is where experienced brokers continue to play a critical role, translating unreported market knowledge into context, strategy, and positioning that technology alone cannot replicate.
For owners, this means preparation matters more than ever. A well-documented, transparently positioned asset aligns better with how modern buyers evaluate risk — and reduces friction during the sale process.
Final Thoughts
Selling commercial real estate has always required strategic planning, but today’s environment rewards discipline, clarity, and informed decision-making. Understanding how pricing, timing, expertise, and modern evaluation tools intersect allows owners to approach a sale with greater confidence and fewer surprises.
By addressing these considerations early, owners place themselves in a stronger position to navigate the process and achieve outcomes aligned with their long-term goals.