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Office Buildings FSBO Guide

Professional suites, medical offices, and office condos under 20,000 sq ft sold by owner.

6.0%–9.0%

Typical Cap Rate

2,000–20,000 sq ft

Typical Size

4%–6%

Broker Commission Saved

Overview

Small office buildings — from a converted Victorian to a purpose-built professional suite complex — are among the most common commercial FSBO transactions. Owner-occupants selling as they retire or relocate, and small landlords exiting the market, often sell directly to other owner-occupants or small investors.

How to Sell Office Buildings By Owner

Value Your Property

Research comparable sales and apply market cap rates. Office Buildings typically trades at 6.0%–9.0%.

Prepare an Offering Memorandum

Create a professional OM with financials, photos, and key property data.

List on LoopNet & Crexi

Publish on the two largest commercial marketplaces to reach qualified buyers.

Negotiate & Sign an LOI

Exchange a Letter of Intent with the buyer to agree on price and major terms.

Due Diligence & Close

Allow 30–60 days for the buyer to complete due diligence, then close with an attorney or title company.

Key Due Diligence for Office Buildings

Buyers will typically request the following during the 30–60 day due diligence period:

1Lease abstracts, rent rolls, and tenant financials
2HVAC, elevator, and mechanical system age and condition
3ADA accessibility compliance (multi-story buildings)
4Environmental history and Phase I ESA
5Operating expense structure (gross, modified gross, or NNN)
6Opportunity Zone status for potential buyer tax benefits

Full due diligence checklist for commercial FSBO →

Who Buys Office Buildings?

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Owner-occupant professionals (doctors, lawyers, accountants)

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Small office investors and landlords

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Medical office REITs and healthcare real estate investors

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Local developers for conversion or repositioning

Tax Strategy

Consider a 1031 Exchange

Selling office buildings with capital gains? A 1031 exchange lets you defer both federal and state taxes by reinvesting in like-kind commercial property. You must engage a Qualified Intermediary before closing and identify replacement property within 45 days.

Learn About 1031 Exchanges Find a Qualified Intermediary ↗

Affiliate disclosure (FTC): The links below are sponsored partnerships. We may receive compensation if you click and make a purchase, at no additional cost to you. We only feature services we believe are useful to commercial FSBO buyers and sellers.

Recommended Tools & Services

LoopNet

Top Listing Site

The largest commercial real estate marketplace. List your property for sale or find available storefronts, office, and industrial space.

Browse LoopNet ↗

Crexi

Fast Growing

Crexi is a modern commercial marketplace with powerful analytics. Great for sellers wanting data-driven pricing and broad buyer reach.

Try Crexi ↗

1031 Exchange Corp

Tax Strategy

Defer capital gains taxes by reinvesting proceeds into a like-kind commercial property. Speak with a qualified intermediary before closing.

Find a QI ↗

Rocket Lawyer

Legal Docs

Commercial purchase agreements, letters of intent, lease agreements, and NDA templates — reviewed by attorneys at a fraction of the cost.

Get Legal Docs ↗

CCIM Institute

Education

The most recognized commercial real estate investment credential. CCIM-designated professionals lead the industry in commercial transactions.

CCIM Institute ↗

Frequently Asked Questions

Can I sell office buildings by owner without a broker?▼

Yes. Property owners have the legal right to sell office buildings without a licensed broker in all 50 states. Commercial transactions between sophisticated parties are specifically designed for direct negotiation. Saving a 4%–6% broker commission on a commercial property sale is a significant financial benefit.

What is a typical cap rate for office buildings?▼

Office Buildings typically trades at cap rates of 6.0%–9.0%. Cap rates vary significantly by market, location, lease terms, and property condition. Lower cap rates indicate lower perceived risk and higher demand markets. Always verify current market cap rates with recent comparable sales in your submarket.

What due diligence should a buyer perform on office buildings?▼

Standard due diligence for office buildings includes: Lease abstracts, rent rolls, and tenant financials; HVAC, elevator, and mechanical system age and condition; ADA accessibility compliance (multi-story buildings); and more. A typical commercial due diligence period runs 30–60 days.

Who are the typical buyers of office buildings?▼

Common buyers of office buildings include: Owner-occupant professionals (doctors, lawyers, accountants), Small office investors and landlords, Medical office REITs and healthcare real estate investors, Local developers for conversion or repositioning. Marketing directly to these buyer types through LoopNet and Crexi maximizes exposure.

Should I do a 1031 exchange when selling office buildings?▼

If you have capital gains on the sale of office buildings, a 1031 exchange lets you defer federal (and often state) capital gains taxes by reinvesting proceeds into like-kind commercial property. You must identify replacement property within 45 days and close within 180 days of your sale. Engage a Qualified Intermediary before closing — you cannot touch the proceeds.

Other Property Types

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Retail & Storefronts

5.5%–8.5%

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Industrial & Flex Space

5.5%–8.0%

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Multifamily (2–20 Units)

5.0%–8.0%

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Mixed-Use Properties

5.0%–7.5%

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Commercial Land

N/A (land)

Disclaimer: Cap rate ranges and market data are general estimates for informational purposes only. Actual values vary by location, property condition, and market conditions. Always consult a licensed commercial appraiser, broker, and attorney before making real estate decisions. See our full disclaimer.