Kollosche Commercial’s sales arm is led by Adam and Tony Grbcic, a father and son team with more than 50 years’ combined experience in the commercial sector. The Grbcics have a proven track record of results across all asset classes such as retail, office, industrial, mixed and special use, development sites and leasehold assets. 

A powerful brand, industry knowledge and experience puts Kollosche Commercial in an ideal position to advise sellers on the right sales strategy for your asset. Innovative marketing attracts qualified buyers and builds competitive tension needed to achieve premium pricing. 

Kollosche Commercial’s Adam Grbcic is both a licensed realtor and a qualified property valuer. 

Adam has the skills to advise on property valuations for clients seeking a market update for Self Managed Super Funds or accounting purposes. Adam cannot provide valuations for bank purposes. For more information, reach out to Adam on adam@kollosche.com.au.

The timeframes for commercial contracts are generally longer due to the level of scrutiny required. It is common for commercial buyers to need in excess of 30 days when obtaining finance and conducting due diligence. Settlements of 60 to 90 days are also common in the commercial sector, while development sites can take up to 18 months to settle. Kollosche Commercial remains in regular contact with sellers throughout the sales process.

Certain properties fall within the category of both residential and commercial in terms of what the potential end uses might be. Kollosche Commercial works in close collaboration with our residential sales agents. We can advise on the best strategy to market your property to its full potential and engage the right agents to execute an effective campaign. Ask about previous collaborative campaigns that have achieved outstanding results for our clients. 

Kollosche Commercial’s sales arm is led by Adam and Tony Grbcic, a father and son team with more than 50 years’ combined experience in the commercial sector. The Grbcics are experienced across all asset classes such as childcare, aged care, storage, medical, retail, commercial, industrial, development sites and leasehold assets. Extensive industry knowledge means we can advise buyers on how to reposition assets to better use for optimal returns. 

Kollosche Commercial provides an end-to-end service for both buyers and sellers. With a qualified valuer on the team, buyers can proceed with peace of mind knowing they are receiving full transparency on the building they are purchasing along with accurate rental assessments in line with current market values.

A Letter of Offer form will be provided by the selling agent to the potential buyer to complete when they are ready to make an offer. This form presents the buyer with the chance to outline their full offer including purchase price, initial deposit, special conditions and settlement period. 

The vendor may alter the Letter of Offer and send it back to the buyer for review. This negotiation process can go back and forth until both parties are satisfied. Once the final offer has been signed by both parties, it becomes a legally binding document.

If the contract entered into is conditional on finance, building and pest or any other special condition, a time frame will be prescribed in the contract to meet the requirements of the conditions (often 14 days, but this can sometimes be longer or shorter).

It is the buyer’s responsibility to carry out their due diligence, book in a building and pest inspection, and liaise with their financer. If the buyer is satisfied with the outcome of any conditions outlined in the contract, the buyer’s solicitor will need to notify the seller’s solicitor that the contract can become unconditional.

Once a contract is unconditional, the balance deposit outlined in the contract will become payable and final searches will be conducted by the buyer’s conveyancer to make necessary arrangements for settlement. The bank will liaise directly with the conveyancer to arrange the transfer of funds on settlement day.

It is recommended for buyers to conduct a pre-settlement inspection on the morning that settlement is due to ensure the property is empty and in the same condition as when it was initially inspected. If there are any issues, it is important to mention this prior to settlement.

Kollosche Commercial facilitates this process with frequent communication between both buyer and seller to ensure a smooth transaction for all parties.

Buyers who are based interstate are advised to seek legal advice prior to entering into a commercial contract in Queensland, as regulations and laws differ from state to state. Kollosche can refer to local legal professionals, while our in-house legal team prepares and vets all documents in commercial transactions to ensure a smooth purchasing process for all parties. Kollosche Commercial agents have a strong working knowledge of town planning regulations and common development restrictions, and can refer you to relevant authorities for more specific information and guidance.  

Kollosche Commercial provides an end-to-end service for commercial asset owners with sales, leasing and property management under the one roof. Industry veterans Kelly Buxton and Elke Rosen draw on decades of experience and a strong network of relationships to achieve optimal returns on commercial assets. Kelly specialises in Commercial Leasing while Elk is focused on Property Management, and together they provide successful outcomes for commercial owners across all sectors including retail, office, industrial, mixed and special use assets.

When seeking to purchase fully occupied investment stock, Kollosche Commercial can offer insight into the existing lease and if the current income is true to market values. Our in-house legal team reviews existing leases to ensure all documents are in order prior to sale.

It depends on the landlord and their objectives. Many landlords manage their own property to save on costs. When a landlord decides to engage a property manager, it is because the benefits outweigh the potential costs (although these costs can sometimes be passed onto the tenant). The services provided by a property manager include tenant management, arranging repairs and maintenance, invoicing, rent collection, rent arrears management, and financial reporting.

Landlords looking to lease a property themselves will have a smaller reach than a larger agency, so potential tenants will be restricted to those within the landlord’s existing network.  The value in engaging a leasing agent is the experience and resources that they can provide, including access to an extensive database of tenants. They will also have the experience to potentially negotiate a better deal than a landlord who leases their own property.

One of the advantages of owning a commercial property is that the tenant is responsible for most of the maintenance, which can include things such as servicing air conditioning units, exhaust systems, roller doors, and grease traps. A landlord is generally responsible for repairs of a structural or capital nature, which can include repairs to a roof, walls, sub-flooring, or any existing installed equipment.

Almost all outgoings are able to be recovered from the tenant under a lease, except where the lease is a retail lease, where the legislation prohibits the recovery of certain outgoings such as land tax or the cost of obtaining mortgagee consent.  Examples of outgoings usually recovered under both commercial and retail leases include council rates and water, insurance, strata levies and electricity.

A gross lease has the outgoings factored into or included in the rent. A net lease has the outgoings recovered or charged separately to the rent.

A gross lease is beneficial if the growth in rent is expected to outpace the increase in the property’s outgoings or expenses. For example, where outgoings are estimated to increase by 2 per cent in the coming years, but rent increases are at 4 per cent. A net lease is beneficial if the reverse is true. That is, where the cost of outgoings outpaces potential rent increases.

Tenants must pass a bank verification process to obtain a guarantee, which provides a further layer of risk reduction for a landlord. A bank guarantee is also a guarantee from a third party to make a payment to the landlord when the landlord calls for it, which means they are not usually recoverable by an administrator or liquidator in the event a tenant goes into administration or liquidation. Cash bonds are simpler and can be provided in a shorter time frame. A cash bond can be held by a landlord or an agent.

Having a diversified tenancy mix reduces exposure to problems affecting any one tenant type or industry. For example, having only hospitality tenants means if there is a lockdown all those tenants may suddenly lose their income. Providing exclusivity benefits the tenant, who can capitalise on reduced competition.

The market rate is determined by comparable properties that have been recently leased in the area. If there is limited supply of an asset, tenants are usually willing to pay more for it, raising the overall rates in the area. The reverse is also true. If there are few tenants looking to lease a particular asset type, rents are generally reduced.

Commercial properties need fewer inspections than residential tenancies. Annual inspections are generally sufficient to check the property for any unreported structural issues and for any non-approved fit-outs or installations.

We recommend reaching out to a tenant six months before their lease is due for renewal or expiry.  This generally aligns with option renewal notice requirements and gives the landlord time to re-let the property if the tenant decides to vacate.

Where the lease is a retail lease with an option to renew, there are legislative provisions requiring the landlord to notify the tenant of the last date to exercise its option. This notice must be given at least two months, but not longer than six months, before the option exercise date. Different provisions apply if there is no option to renew.

Lease renewals and options usually require a market rent determination, as opposed to a fixed or Consumer Price Index (CPI) increase. The market rent determination provides the baseline for negotiating a new agreed rent. If both parties cannot agree on the new rent, a third-party valuer will usually be engaged. If it is a lease renewal without an option and both parties cannot agree on the new rent, then a landlord may terminate the lease and re-let the property.

For commercial leases, the annual rent increases are agreed upon in advance when executing a lease agreement. Rents are usually increased annually by a fixed percentage or relative to changes in the CPI over a relevant 12-month period. It is polite to notify a tenant in advance if they have a rent increase coming to help them to plan for the rise.

There is no standard lease duration for an asset class. Lease lengths vary from property to property. If a property is small and requires no fit-out, tenants may opt for a short lease of between one to three years. If the property is larger or requires an expensive fit-out, tenants generally seek a longer lease period to make the lease worth the initial expense.

If a tenant wishes to terminate their lease early, they must find a suitable replacement tenant approved by the landlord. Tenants can choose to engage a leasing agent to find a replacement tenant and are responsible for all leasing fees and marketing costs. Alternatively, they can choose to find a replacement tenant themselves. The current tenant maintains all existing lease obligations until a new tenant is approved by the landlord and a new lease is signed.

Tenants typically relocate to upsize or downsize to a new property that better suits their size requirements, or because the rent becomes too expensive for them. When market rent increases to more than what a tenant may be able to or is willing to pay, they may relocate to a similar property in a cheaper suburb.