You find a buyer for commercial real estate by working out which kind of buyer fits the building, then reaching that group through a broker, listing sites and direct calls. The likeliest buyer already owns, rents or runs a business in a similar building nearby. An owner who posts a listing and waits reaches only the buyers who happen to search that month.
Work through the channels in this order:
- People who already know the building. Call the tenants, the owners next door and any business that has asked about the property before.
- A broker's buyer list. An investment sales broker keeps a list of owners and investors who bought similar buildings, and calls them before the listing goes public. Our page on what commercial real estate brokers do covers the rest of the job.
- Listing sites. Post the property where buyers search for that kind of building (next section).
- Exchange intermediaries. Qualified intermediaries hold the sale proceeds of investors completing a 1031 exchange, and those investors need a replacement property on a deadline.
- Businesses that could move in. A company renting space nearby may want to own; its regional office or head office makes that decision.
Every channel sends buyers to the same package: the offering memorandum, with the rent roll, the leases and 12 months of operating statements behind it. Buyers price a building on its income, so the asking price has to match the numbers in that package. Our guide on how to value commercial real estate shows how buyers do the arithmetic.
Sellers choose between two ways of putting that package in front of buyers:
- A quiet sale. The broker shows the building to a short list of buyers it has already screened. Tenants and competitors hear little, and the price rests on fewer bids.
- A public listing. The building goes on listing sites and to every broker in the market. More buyers see it, and more of the requests for records come from buyers without the money to close.
Many brokers start with a one-page summary that leaves out the address and the tenants' names. A buyer who wants more signs a confidentiality agreement, receives the offering memorandum and tours the building. A deadline for offers then puts every serious buyer on the same timetable.
LoopNet and Crexi list commercial property for sale across the United States. In Canada, REALTOR.ca carries commercial listings, and Centris carries them in Quebec. A listing placed by a broker also reaches other brokers, who bring their own buyers and share the commission with the listing broker.
A listing site answers buyers who are already searching. The owner-user down the street and the tenant in your building may never open one, which is why the calls come first.
Six kinds of buyers purchase commercial real estate: owner-users, private investors, 1031 exchange buyers, institutions, the building's own tenants and developers. Each one wants a different building, so the property you sell narrows the list before you make a single call.
| Buyer | What it wants | Where you reach it |
|---|---|---|
| Owner-user | space for its own business, often bought with an SBA or bank loan | businesses renting nearby, your own tenants |
| Private investor | a building whose rent covers the loan and pays a return | broker lists, listing sites, local landlords |
| 1031 exchange buyer | a replacement property before its IRS deadline | qualified intermediaries, brokers |
| Institution or REIT | large leased buildings in its target cities | investment sales brokers |
| Current tenant | the space it already occupies | the lease file and a direct call |
| Developer | land, or a building to replace | land brokers, neighbouring owners |
The size of the building changes who buys it. HUD's Rental Housing Finance Survey shows the pattern on apartment buildings: in 2024, individual investors owned 4.6% of rental homes in properties of 50 or more units (NMHC, apartment ownership by size). A small building tends to sell to a local owner or a family. A large one sells to a company with a fund or a lender behind it.
Source: HUD and U.S. Census Bureau, 2024 Rental Housing Finance Survey, as reported by the National Multifamily Housing Council, March 2026.
The owner-user also needs room to move in. A business that buys an existing building with SBA financing occupies at least 51% of its rentable space and may lease out up to 49% (SBA rule, 13 CFR 120.131). A building fully leased to long-term tenants therefore sells to investors, and a vacant or half-empty one opens the door to owner-users.
A 1031 exchange buyer is a US investor who sold a property and must buy a like-kind replacement within an IRS deadline to defer the tax on its gain. The IRS rule reads: "The replacement property for the exchange must be identified within 45 days after the property being given up is transferred" (IRS, Form 8824 instructions). The buyer must then receive it within 180 days, or by its tax return's due date if that comes first.
That clock makes the buyer motivated, and it can also end the deal. A buyer whose own sale slips, or who runs out of days, may withdraw. Canada has no like-kind exchange, so this buyer pool exists only for US property; the parent guide explains whether Canada has a 1031 exchange.
You qualify a commercial real estate buyer by checking three things: the cash its loan calls for, proof of that cash and enough time to close. The cash depends on how the buyer pays.
The SBA requires a 504 borrower to contribute at least 10% of the project cost (SBA rule, 13 CFR 120.910). The share rises to 15% if the business has operated for two years or less or the building is a single-purpose one, and to 20% when both apply. For a bank loan, the FDIC sets a supervisory loan-to-value limit of 85% on improved property, and a bank sets its own limit at or below it (FDIC rule, 12 CFR part 365).
Applied to a $2,000,000 building, taking the price as the project cost:
| Buyer | Cash it brings, at least | Proof to ask for |
|---|---|---|
| SBA 504 owner-user | $200,000 (10%) | a bank statement and the lender's commitment letter |
| SBA 504, new business or single-purpose building | $300,000 (15%) | the same, plus the business's operating history |
| Bank borrower | $300,000 (15%) | a bank statement and the lender's term sheet |
| Cash buyer | $2,000,000 (100%) | a recent statement covering the full price |
The bank row is a floor. A lender that caps its loan at 75% of value asks the buyer for $500,000 on the same building.
A buyer should show a recent bank or brokerage statement for its cash and, when it borrows, a lender's letter or term sheet for the loan. An exchange buyer shows the qualified intermediary's confirmation of the funds it holds. Ask for proof before you release the rent roll, and again before you accept an offer.
Sellers often take the highest offer as the best buyer, overlook the rights their tenants hold and send confidential records to anyone who asks. Each mistake can cost the sale or the tenants.
It may. Some commercial leases give the tenant a right of first refusal, which lets it match an outside offer you have accepted, or a right of first offer, which lets it bid before you market the building. Read every lease before you call buyers. A buyer who learns of the right late can walk away, and a sale that skips it invites a dispute.
The best offer is the one that closes. A higher price paired with a long due diligence period, a loan condition and a small deposit gives the buyer months to renegotiate or leave. The purchase and sale agreement sets those terms, so compare them line by line along with the price.
Release the rent roll, the leases and the operating statements after a buyer signs a confidentiality agreement and shows proof of funds. A tenant who hears about the sale from a competitor may start looking for other space. The agreement keeps the details with buyers who can close, and the full process from pricing to closing is in our guide on how to sell commercial real estate.