Costs when buying Commercial Property

Purchasing a commercial property can feel like a big step, and understanding the full costs when buying commercial property is essential before you commit. Below is a straightforward, investor‑focused guide to help you prepare.

1. Seek Professional Support When Sourcing an Investment Property:

Finding the right commercial investment isn’t just about the price – it’s about identifying assets with strong tenant covenants, stable yields, and long‑term potential. An agent can help you:

• Identify suitable on and off‑market opportunities
• Assess tenant quality and lease structures
• Analyse yields and market comparables
• Flag risks early in the process
• Handle negotiations and due diligence

Working with an expert ensures you’re not just buying a property – you’re securing the right investment for your strategy.

Agent fees for sourcing or acquiring a commercial property typically run at around 1% of the purchase price, and should be incorporated into your budgeting.

2. Start With the Purchase Price:

It may seem obvious, but the purchase price is only the starting point.

Commercial values are driven by a mix of factors, including:

• Location
• Tenant covenant strength
• Lease terms and duration
• Future development or refurbishment potential

Reviewing these fundamentals at an early stage helps set realistic expectations and ensures the property aligns with your investment strategy.

3. Stamp Duty – Don’t Underestimate It:

Stamp duty can significantly affect the overall cost of acquiring a commercial property, and it’s essential for buyers to understand how it’s calculated.

As of 2025, the stamp duty rate for commercial property in Ireland is 7.5%.
This applies to the acquisition of both land and buildings used for commercial purposes, including offices, retail units, industrial facilities and similar asset types.

Because stamp duty is charged on the entire purchase price, the cost can be substantial. Buyers should factor this in from the outset, as it represents one of the most material upfront expenses beyond the price itself.

4. Legal Fees:

Commercial transactions involve a deeper legal review than residential purchases. Expect your solicitor to examine:

• Leases and side agreements
• Planning and compliance history
• Service charge documentation
• Building condition and any restrictions

This level of due diligence is essential.

Solicitor fees for commercial acquisitions typically range between 0.65% and 0.85% of the purchase price, depending on the complexity of the transaction.

5. Surveys & Technical Inspections:

A thorough assessment of the building is crucial. This may include:

• A detailed structural survey
• Mechanical and electrical assessments
• Fire safety and access compliance checks

These reports help you identify risks and negotiate appropriately.

6. Understand VAT:

VAT treatment differs from property to property.
Some sales attract VAT, others don’t. Seek tax advise early in the process to avoid unexpected costs and ensures you understand whether VAT is recoverable in your situation.

7. Financing Costs:

If you’re taking out a commercial loan, build in the associated costs, including:

• Arrangement fees
• Valuation fees
• Broker fees
• Higher deposit requirements

Commercial lending is more bespoke than residential, so expect a more detailed approval process and potentially tighter lending criteria.

8. Factor in Ongoing Ownership Costs

Once purchased, you’ll need to budget for:

• Insurance
• Repairs and maintenance
• Property management fees
• Service charges (if applicable)
• Compliance updates (fire, access, safety)

These ongoing expenses impact your net yield and should be planned for.

Conclusion

Commercial property can be a strong long‑term investment, but only when all costs are clearly understood and planned for. With good preparation, solid due diligence, and the right professional guidance, the process becomes far more manageable – and your investment much more secure.