Commercial Property Investor Podcast The 4 Numbers You Need to Know Before You Make an Offer
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Oct 2, 2025 A practical four-number method for deciding what to offer on commercial property. Learn how to estimate achievable rental income and factor in operating costs and vacancy. See how fit-out capital and desired returns shape your maximum purchase price. Learn to check local market ceilings and test spec scenarios before committing.
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Start With Rental Income
- Work out the rental income first rather than starting from the asking price.
- Use that income as the foundation for your offer and project model.
Include True Operating Costs
- Calculate operating costs including management fees and vacancy allowances.
- Always include vacancy as an ongoing cost because tenants and circumstances change.
Budget Fit-Out Capital Correctly
- Estimate capital fit-out costs to reach your target specification and audience.
- Adjust this figure based on whether you need white-boxing or full bespoke fit-outs.