A commercial real estate agent finds or markets income and business property, works out what it is worth, negotiates the deal and manages it through due diligence to closing. For a buyer in Vancouver or anywhere in BC, that means sourcing listed and off-market property, analysing the income and costs, writing the letter of intent and the contract, organising checks on zoning, environment, leases and building condition, coordinating with your lender, lawyer and accountant, and keeping every deadline on track until the keys change hands. This guide walks through each stage from first search to completion.
Step 1: How does a commercial agent find the right property?
The search starts with your brief. For an investor that means budget, target return, asset type and how much management you will accept. For a business owner it means size, layout, loading, power, parking and the zoning your operations need.
From there the agent searches in three places:
- Listed property on MLS and commercial listing services.
- Off-market property that owners will sell quietly to a qualified buyer but will not advertise. Many commercial deals happen this way because owners do not want tenants, staff or competitors to know.
- Direct approaches to owners of buildings that fit the brief, even if they have not thought about selling.
A good agent also screens out what does not fit before you spend time on it.
Step 2: How does the agent analyse a commercial property?
Commercial property is valued mostly on income. Your agent should gather the rent roll, the leases and at least the last two years of operating costs, then work out the net operating income: the income the building collects less what it costs to run, before financing. Dividing that by the price gives the cap rate. Our guide to cap rates in Surrey and BC shows the calculation with examples from deals our team has closed.
The analysis then goes further:
- How long are the leases, and how strong are the tenants?
- Are the rents below or above what the market would pay today?
- What capital work is coming: roof, mechanical systems, parking?
- What could improve the income: vacant units, below-market leases, unused land?
For an owner-user, the analysis compares the cost of owning to the cost of leasing and checks that the building will work for the business for years.
Step 3: What is a letter of intent?
In commercial deals, the first written step is often a letter of intent (LOI). It sets out the main terms: price, deposit, conditions, the length of the due diligence period and the closing date. Most of an LOI is non-binding, which lets both sides agree on the big points before paying lawyers to draft a full contract. Some clauses, such as confidentiality or a short exclusivity period, may be binding, so read it carefully.
Once the terms are agreed, the agent prepares the contract of purchase and sale, usually on a commercial form adapted for the deal, with your lawyer reviewing any special clauses. Some deals go straight to a contract without an LOI. Either way, the agent's job is to make sure the conditions protect you.
Step 4: How does negotiation work on a commercial deal?
Price is only one point. A commercial agent also negotiates:
- The deposit, how much and when it becomes non-refundable.
- The conditions (often called subjects) and how long you have to remove them.
- The documents the seller must provide, and by when.
- Vacant possession or tenant arrangements, including any tenant who must leave or stay.
- Closing date and adjustments for rent, deposits, property tax and operating costs.
Good negotiation often means giving the seller something they value, such as a quicker closing or fewer conditions, in exchange for a better price or more time to check the property.
Step 5: What happens during due diligence?
This is the stage that protects your money. Your agent coordinates the checks and makes sure each one is finished before the condition deadline. The usual list:
Zoning and permitted use
The agent confirms the property's zoning with the municipality, such as the City of Vancouver, the City of Surrey or the Township of Langley, and checks that your intended use is allowed. If you plan to redevelop, they look at the official community plan and any area plan.
Environmental review
Lenders often require a Phase I Environmental Site Assessment. In Canada these follow the CSA Z768 standard: a records review, a site visit and interviews to identify actual or potential contamination. If the Phase I finds a concern, a Phase II with soil or water sampling may follow. Former gas stations, dry cleaners and industrial sites need special care.
Leases and tenant confirmations
Every lease is reviewed against the rent roll. Buyers commonly ask for estoppel certificates, in which each tenant confirms its rent, lease term and deposit, and that there are no disputes with the landlord. This catches side deals and unpaid rent before you own the problem.
Building condition
A building inspector or engineer reports on the roof, structure, mechanical and electrical systems, and the cost of work needed in the next few years.
Title and financials
Your lawyer reviews title for charges, easements and covenants. Your accountant reviews the operating statements, property tax and service contracts. The agent keeps all of these moving and tells you early if something needs renegotiation.
Step 6: How does the agent help with financing?
Commercial lenders look at the property's income, the borrower's strength and, for owner-users, the business's financial statements. Your agent prepares the property package the lender needs, including the rent roll, leases, operating costs and photos, and keeps the appraisal and environmental report on schedule so the financing condition can be removed on time.
For rental buildings with five or more units, CMHC-insured financing such as MLI Select may be available. Business owners buying their own premises can read about buying property for your business, including when up to the full purchase price may be financed.
Step 7: Removing conditions and closing
When the checks are done and financing is approved, you remove your conditions in writing and the deal becomes firm. Your agent then works with both lawyers on the statement of adjustments, tenant notices, transfer of deposits and keys. GST and property transfer tax are handled at closing, and your accountant and lawyer should confirm who accounts for GST on the sale. On completion day, the money moves, title is registered in your name and the property is yours.
What does a commercial agent do for a seller?
For a seller the steps run the other way: preparing the financial package, pricing on income, deciding whether to market publicly or quietly to selected buyers, qualifying buyers, negotiating, and managing the buyer's due diligence so the deal does not fall apart late. Our page on how we sell commercial property explains this process.
Working with our team
The Oberoi Group is based in White Rock and works on commercial property across Metro Vancouver, the Fraser Valley and beyond. Our commercial team ranked Top 3 across Canada at RE/MAX in 2025 by commission. We have completed acquisitions for clients such as a medical and professional office building at 4695 Canada Way in Burnaby and an office building at 99 Padmore St in Penticton, bought at $2.9M with a 6.6% cap rate.
See our work in commercial real estate in Metro Vancouver and commercial real estate in Surrey. If you are still deciding which kind of agent you need, read commercial vs residential realtor, and for fees, see how much a commercial realtor charges in BC.
Frequently asked questions
What does a commercial real estate agent do for a buyer?
They find listed and off-market property, analyse its income and costs, negotiate the letter of intent and contract, coordinate due diligence and financing, and manage the deal to closing.
What is a letter of intent in commercial real estate?
A short document setting out the main terms of a deal, such as price, deposit, conditions and closing date, before a full contract is drafted. Most of it is usually non-binding, though clauses like confidentiality may be binding.
What is a Phase I Environmental Site Assessment?
A review of records, a site visit and interviews to identify actual or potential contamination, carried out in Canada under the CSA Z768 standard. Lenders often require one. It does not include sampling, which is done in a Phase II if needed.
What is an estoppel certificate?
A signed statement from a tenant confirming its rent, lease term, deposit and that there are no disputes with the landlord. Buyers use them to check that the rent roll and leases are accurate.
How long does a commercial purchase take?
It depends on the conditions agreed. The due diligence period, financing approval and closing date are all negotiated, and complex properties need more time for environmental, building and lease reviews.
Is GST charged when I buy commercial property in BC?
A sale of commercial real property is generally taxable. If the buyer is GST-registered, the buyer usually self-assesses the GST instead of paying it to the seller. Confirm the treatment with your accountant and lawyer.
Sources
Rates, thresholds and program rules in this article were checked against these official pages on October 14, 2026. Rules change, so confirm current details before you act.