FAQ’s

About Ray White Commercial WA

Ray White Commercial WA is a leading commercial real estate agency in Perth CBD, delivering integrated commercial property sales, leasing, advisory and asset management services across Western Australia. We work with investors, owners, developers and occupiers to maximise performance across every stage of the commercial property lifecycle.

Backed by the strength of the Ray White Commercial International Network, our team combines deep local market knowledge with national and global reach. RWC WA is now recognised as an industry leader with specialists operating in all fields of commercial real estate including Capital Transactions, Commercial, Hospitality & Tourism, Medical, Industrial, and Office Leasing providing informed, strategic advice tailored to each asset and client objective.

Our approach is based on integrity, transparency and long-term relationships. Through experienced specialists, data-led insights and proactive engagement, Ray White Commercial WA is recognised for delivering trusted commercial property solutions and consistent results across the Western Australian market.

What services does Ray White Commercial WA offer?

  • Commercial sales and leasing (office, industrial, retail, healthcare)
  • Property and asset management
  • Landlord and tenant representation
  • Investment sales and advisory
  • Market research and reporting

What property types do they specialise in? Office, industrial/warehouse, retail, healthcare and mixed-use commercial assets, along with broader investment and development sites across the Perth metro area and regional WA.

Buying Commercial Property

How is buying commercial property different from buying residential? Commercial purchases are typically assessed on income potential and yield rather than emotional or lifestyle appeal. Lease terms, tenant covenant strength (the tenant’s financial reliability), outgoings, and zoning all weigh heavily on value. Finance, due diligence, and settlement timeframes can also differ from residential transactions.

What is “yield” and why does it matter? Yield is the annual rental income expressed as a percentage of the property’s purchase price. It’s a key metric investors use to compare commercial properties and assess return relative to risk — lower yields often mean lower perceived risk (e.g. prime CBD office), while higher yields can reflect higher risk or secondary locations.

All of these are measured against Australian Government 10 year bond rates

What due diligence should I do before buying?

  • Review the lease(s) and tenant history
  • Check zoning and permitted use with the local council
  • Check the Certificate of Title and and any encumbrances or easements registered
  • Obtain a building and pest inspection
  • Review outgoings, rates, and land tax
  • Check for contamination history (especially industrial sites)
  • Confirm car parking ratios and access/easements
  • Have contracts reviewed by a solicitor experienced in commercial conveyancing

Do I need finance pre-approval before making an offer? It’s strongly recommended. Commercial lending criteria (loan-to-value ratios, serviceability tests) differ from residential loans, and having finance in principle strengthens your negotiating position.

We offer an in-house finance team – Fund. Dan Steed at Fundd brings tailored finance expertise directly into the Ray White Commercial (WA) ecosystem, helping their clients navigate funding options with clarity and confidence. Backed by a diverse and experienced team, Fundd offers the depth and scale of a full-service brokerage across Australia. Whether you’re after business lending, asset finance or strategic funding advice, you’ll benefit from Dan’s personal guidance, underpinned by a capable team working behind the scenes to deliver smart, streamlined outcomes.

Leasing Commercial Property

What’s the difference between a gross lease and a net lease?

  • Gross lease: the rent is inclusive of most outgoings (council rates, water, building insurance, etc.), paid by the landlord.
  • Net lease: the tenant pays rent plus a share of outgoings separately. Understanding which structure applies significantly affects your total occupancy cost.

What is a make-good clause? A make-good clause requires the tenant to return the premises to an agreed condition (often the original base-building state) at the end of the lease. Costs can be significant, so it’s important to understand your future liability.

How long are typical commercial lease terms? Terms vary by property type and location but commonly range from 3–10 years for office and retail, with options to renew. Industrial leases can run longer. Terms are negotiable and depend on the tenant’s requirements and the landlord’s investment strategy.

What’s a bank guarantee or personal guarantee, and why is it required? Landlords commonly require a bank guarantee (typically 3–6 months’ rent) or a director’s personal guarantee as security against a tenant defaulting on the lease. Requirements vary based on the tenant’s financial standing and lease term.

Selling or Leasing Out Your Property

How is my commercial property valued? Valuers and agents typically use methods such as the capitalisation (income) approach, comparable sales analysis, and sometimes a discounted cash flow model for properties with complex lease structures. An agent’s appraisal can give an indicative range, while a formal valuation from a registered valuer is often needed for finance or legal purposes.

Should I sell with a vacant property or with a tenant in place? It depends on your buyer profile. Investors often prefer a tenanted property with secure income, while owner-occupiers usually want vacant possession. Your agent can advise on which strategy suits current market demand for your asset.

What marketing methods are used for commercial sales? Common approaches include expressions of interest (EOI), private treaty, and auction, supported by digital marketing, signage, agent networks, and targeted outreach to investor and occupier databases.

Property Management

What does a commercial property manager actually do? Rent collection and arrears management, lease administration, coordinating maintenance and repairs, managing outgoings and budgets, liaising with tenants, and ensuring compliance with lease terms and relevant regulations.

How are management fees usually structured? Typically a percentage of gross rental income, sometimes with additional fees for leasing, lease renewals, or major works supervision. Fee structures vary by manager and property complexity, so it’s worth comparing scope of service alongside price.

Who manages my property when  my manager is on leave? RWC WA operate a buddy system where the nominated property manager shares important details in respect to the property to their “buddy” who can ensure continuity of service to you and your tenants when they are unavailable.

Market & Local Knowledge

What’s currently driving the Perth commercial property market? Conditions shift with interest rates, reconomic activity, population growth, and supply versus demand. Ray White Commercial publishes regular market updates and research (including reports from Ray White’s Head of Commercial Research) covering trends across office, industrial and retail sectors — worth checking for the latest data before making decisions.

Do I need a WA-specific agent, or can any commercial agent help? Local knowledge matters in commercial real estate — zoning rules, council requirements, precinct-specific demand, and tenant pools can vary significantly even within Perth. An agent with strong WA and Perth-metro experience is generally better placed to advise on pricing, positioning, and buyer/tenant targeting.

Getting Started

What information should I prepare before speaking with an agent?

  • Certificate of title / ownership details
  • Current lease agreements (if tenanted)
  • Outgoings statement (rates, insurance, strata if applicable)
  • Any recent valuations or building reports
  • Your objectives (timeframe, price expectations, sale vs. lease)

How can I contact Ray White Commercial WA?

You will find us at 7/30 The Esplanade, Perth

Or alternatively, you can reach us at (08) 6253 5222  or admin.commercialwa@raywhite.com

This FAQ is intended as general information only and does not constitute financial, legal, or investment advice. Always seek advice from a qualified professional (solicitor, accountant, or licensed valuer) before making commercial property decisions.