Planning permit delays are killing my deals – How can I prevent this for commercial leases and sales?

Welcome to Planning 101 for Commercial Real Estate Agents, a blog series designed to equip you with essential knowledge about how town planning impacts commercial properties in Victoria. Understanding planning isn’t just a technicality; it’s a strategic tool that helps you identify opportunities, manage risks, and close deals smoothly for your clients.

Further reading in this series:

You’ve worked hard to find the right tenant or buyer for a commercial property in Victoria. Heads of agreement are signed, or the offer is on the table. Then comes the crunch: the client discovers they need a planning permit for their intended use, signage, or fit-out, and the potential for significant delays puts the entire deal at risk. How can you avoid this frustrating scenario?

Unexpected planning permit requirements are a major cause of stalled or collapsed commercial property transactions. The key to preventing these delays is proactivity.

The problem: Uncertainty and unforeseen hurdles mid-deal

When a client discovers the need for a planning permit late in the negotiation process, it introduces uncertainty regarding:

  • Timeline: How long will the permit application take? (It can be weeks or months).
  • Outcome: Will the permit actually be granted?
  • Conditions: What conditions might Council impose that affect their plans or costs?

This uncertainty makes commercial real estate clients nervous, impacts their business launch timelines, and provides grounds for renegotiation or withdrawal, often leading to lost deals for the commercial agent.

The solution: Address planning early and provide clarity

The most effective way to prevent planning delays from killing your commercial real estate deals is to address potential planning permit requirements before they become obstacles.

Strategies to prevent planning delays affecting commercial properties:

  1. Pre-listing planning check: Understand the property’s planning controls and likely permit triggers before you market it. This allows you to inform potential clients upfront about the planning pathway required for typical uses or modifications.
  2. Early planning assessment for interested parties: Once you have a seriously interested tenant or buyer with a specific proposed use or fit-out in mind, encourage them (or the landlord/vendor) to get a rapid planning assessment immediately. This confirms if a permit is needed and flags any potential issues early in the negotiation phase.
  3. Facilitate pre-application discussions: For commercial real estate proposals with potential planning complexity, connect your client with a town planner who can organise and lead a pre-application meeting with Council. Getting early Council feedback can identify concerns and help shape the proposal to increase the chances of a smooth application process later.
  4. Manage expectations: Be upfront with clients about the potential for planning requirements based on the property and their intended use. While you don’t need to be the planning expert, acknowledge that permits may be needed and recommend professional advice be sought.
  5. Partner with a planning expert: Have a trusted town planning consultant ready to assist your clients quickly when planning questions arise. Their expertise in navigating Council processes and preparing applications can significantly streamline the path to approval compared to a client trying to figure it out themselves.

By providing access to timely, expert planning advice, you turn potential planning roadblocks into manageable steps, demonstrating value to both commercial property landlords/vendors (smoother transactions) and tenants/buyers (clarity and a clearer path forward).

How AS Planning helps prevent planning related delays

AS Planning works with commercial real estate agents and their clients in Victoria to proactively identify planning permit triggers, provide rapid assessments, liaise with Council, and manage planning applications efficiently. We provide the planning clarity needed to keep your commercial leases and sales on track.

Contact AS Planning to help streamline the planning process and prevent delays for your commercial deals in Victoria. Get a quote.