Reviewed by Robert Mendieta Jr., CCIM — Associate Broker · Commercial Division · DRE #01422904
Last updated: October 14, 2026 · More CRE guides
Commercial property for sale by owner means the owner, not a listing broker, markets the building and negotiates the sale. This guide serves both sides of the search: buyers hunting for commercial real estate for sale by owner, and California owners who want to sell without a broker.
Not legal or tax advice. Apex Real Estate Services is not a law, tax or accounting firm. Have your attorney and CPA review the deal before you sign.
What Does Commercial Property for Sale by Owner Mean?
A commercial property for sale by owner (FSBO) is an office, industrial, retail or land listing the owner markets and sells directly, with no listing broker. The owner still needs a written purchase agreement, an escrow, the disclosures California requires of a seller acting without an agent, and tax-withholding paperwork at closing.
FSBO changes who does the work, not what the deal requires.
Key Takeaways
- Buyers can find FSBO listings on LoopNet, which accepts For Sale by Owner listings from owners.
- Owners can sell their own property. California defines a broker as someone acting “for another or others” for compensation.
- Some disclosures still apply. When their conditions are met: hazardous-substance notice, plus flood and earthquake fault zone disclosures for sellers acting without an agent.
- Asking is not selling. Inland Empire sale prices averaged 6.0% to 9.8% below asking over 12 months (Apex’s analysis of CoStar data, Q3 2026).
Where Do You Find Commercial Buildings for Sale by Owner?
Start with marketplaces that accept owner listings, then work the ground. LoopNet supports For Sale by Owner listings, and its help center names property owners, including FSBO sellers, among those who can list.
If you are searching “commercial for sale by owner,” look beyond a single site. You will also find commercial real estate for sale by owner through signs on the property, local investor networks and letters to owners of buildings you want.
Two cautions. LoopNet says auctions are not available for FSBO listings and require a broker to manage the listing and the transaction process. And the “by owner” label tells you who is marketing a commercial building for sale by owner, not whether the price is right, so underwrite it like any deal.
For brokered inventory in the Inland Empire and Coachella Valley, browse Apex’s current listings.
Is it legal?Can You Sell Commercial Real Estate by Owner in California?
Yes. California defines a real estate broker as someone who, for compensation, sells or negotiates sales of real property “for another or others,” so an owner selling its own property falls outside it.
The Business and Professions Code also exempts a regular officer of a corporation or a general partner of a partnership acting on the entity’s own property without special compensation. It names only corporations and partnerships; for an LLC or trust, ask your attorney.
Under California’s statute of frauds, an agreement to sell real property is invalid unless it, or a note or memorandum of it, is in writing and signed by the party to be charged. So is an agreement to pay anyone to find you a buyer.
Step by stepHow Do You Sell Commercial Property by Owner? An 8-Step Process
Selling commercial property by owner follows the same path as a brokered sale. The difference is that every step lands on you.
- Price it from income and sales. Start from net operating income (NOI), calculate the cap rate your price implies, and test it against comparable sales. A commercial property valuation gives you a second opinion.
- Build the package. Assemble the rent roll, leases, operating expenses and tenant estoppel certificates before you list.
- Scope your disclosures. Specific California duties apply even to a commercial sale (table below); have your attorney confirm them.
- List and market it. Post an FSBO listing on a marketplace that accepts owner listings, such as LoopNet, and add signage and direct outreach.
- Qualify buyers and agree on a letter of intent. Ask for proof of funds, then settle price, deposit, due diligence period and closing date in an LOI. Offering owner financing? Have your attorney set the terms.
- Sign a written purchase agreement. California requires it, and your attorney should draft or review it.
- Open escrow and manage due diligence. Expect requests that track a commercial real estate due diligence checklist: title, leases, environmental reports, financials.
- Close cleanly. Expect Form 593 withholding paperwork, Form 1099-S reporting and any documentary transfer tax at closing. Planning a like-kind exchange? Talk to your CPA before closing; see our guide to 1031 exchange rules.
Asking price is not sale price · Apex’s analysis of CoStar data (Q3 2026)
- Industrial: sale prices averaged 9.6% below asking over 12 months; the Inland Empire market logged 453 transactions totaling $4.4 billion.
- Retail: 6.0% below asking; 677 transactions totaling $2.5 billion.
- Office: 9.8% below asking; 265 transactions totaling $826.4 million.
Source: CoStar. All sales, by owner and brokered alike; not an FSBO-versus-broker comparison.
What Does a Commercial Seller Have to Disclose in California?
Less than a house seller, but not nothing. The Transfer Disclosure Statement and natural hazard disclosure articles are written for single-family residential property; the hazardous-substance, flood-zone and earthquake-fault-zone duties reach commercial sellers, including those acting without an agent.
| Disclosure | Applies to a commercial FSBO sale? | Source |
|---|---|---|
| Transfer Disclosure Statement article | Written for transfers of single-family residential property | Civil Code § 1102 |
| Natural hazard disclosure article | Also written for single-family residential real property | Civil Code § 1103 |
| Hazardous-substance notice | Yes. A nonresidential owner who knows, or has reasonable cause to believe, a hazardous-substance release is on or beneath the property must give written notice before the sale | Health & Safety Code § 78700 (formerly § 25359.7) |
| Special flood hazard area (FEMA Zone A or V) | Yes, for a seller acting without an agent, when a statutory condition is met, such as actual knowledge | Government Code § 8589.3 |
| Earthquake fault zone | Yes, for a seller acting without an agent, if the property is in a delineated zone (conditions apply; confirm with your attorney) | Public Resources Code § 2621.9 |
Under Health and Safety Code § 78700, an owner who fails to give required notice is subject to actual damages and other remedies, and a knowing and willful failure can bring a civil penalty of up to $5,000 for each separate violation. Other duties may apply; have your attorney scope them.
Closing costsWhat Taxes and Closing Costs Come Up in a By-Owner Sale?
Expect three tax steps at closing: California real estate withholding on Form 593, federal FIRPTA withholding if the seller is a foreign person, and Form 1099-S reporting. Counties that have adopted one, and some cities within them, may also charge a documentary transfer tax.
| Item | What it means for an FSBO seller | Source |
|---|---|---|
| California real estate withholding | By default, the buyer withholds 3 1/3 percent of the sales price unless exempt (the seller may elect an alternative calculation); none is required at $100,000 or less. Form 593 is filed after every sale; claim an exemption by giving it to escrow before closing. | Rev. & Tax. Code § 18662; FTB |
| FIRPTA | If the seller is a foreign person, the buyer is usually the withholding agent, at a rate of generally 15%. A U.S. seller gives the buyer a signed non-foreign certification. | IRS |
| Form 1099-S | Commercial and industrial buildings count as real estate for Form 1099-S reporting. Generally, the person responsible for closing files it. | IRS Instructions for Form 1099-S |
| Documentary transfer tax | Where a county has adopted it, $0.55 for each $500 of value or fractional part; a city in that county may add its own. | Rev. & Tax. Code § 11911 |
Hypothetical example: you sell a building for $1,500,000 with no loan staying on it, no withholding exemption and no alternative-calculation election. The buyer withholds 3 1/3 percent, or $50,000. At the $0.55-per-$500 county rate, transfer tax is $1,650 (3,000 units × $0.55), before any city tax.
A buyer that fails to withhold from a foreign seller may be held liable for the tax, so expect to be asked for the certification. Confirm your own position with your CPA.
The trade-offsIs Selling Commercial Property by Owner Worth It?
It can be, if you have time, a clean property and a buyer you can already reach. FSBO trades a listing-side fee for more work and more pricing, disclosure and negotiation risk.
| Task | FSBO: you handle it | With a seller’s broker |
|---|---|---|
| Pricing | You build it from NOI, cap rates and comparable sales | The broker prepares an opinion of value and a pricing strategy |
| Marketing reach | Your listing, your signs and your contacts | Listing platforms plus the broker’s own buyer contacts |
| LoopNet auction | Not available for FSBO listings | A broker manages the auction listing and transaction |
| Fees | No listing-side fee; a buyer’s broker may still ask to be paid | A listing fee set in a written agreement |
The upside is control and no listing-side fee. The downside is workload and pricing risk: across all Inland Empire sales, closing prices landed below asking on average. We found no neutral source measuring whether commercial FSBO sales close higher or lower than brokered ones, so be wary of anyone quoting a percentage.
For the broker-led path, see Apex’s six-step seller process, from preparation and pricing through closing. If certainty matters more than exposure, consider selling directly to Apex. Selling to your tenant over time? See lease to own commercial property.
Common questionsCommercial Property for Sale by Owner: Frequently Asked Questions
Can I sell my commercial property without a real estate broker in California?
Yes. California defines a broker as someone who sells or negotiates a sale for another for compensation, so an owner selling its own property is outside that definition. The sale agreement must still be in writing and signed.
Where can I list a commercial building for sale by owner?
LoopNet supports For Sale by Owner listings, and property owners can create and manage their own listing there. Auctions are not available for FSBO listings on LoopNet. Signs and direct outreach also work.
Do I have to fill out a Transfer Disclosure Statement when selling commercial property?
The Transfer Disclosure Statement article in Civil Code Section 1102 is written for single-family residential property. A commercial seller can still owe the hazardous-substance notice and flood and earthquake fault zone disclosures.
What environmental disclosure does a commercial seller owe in California?
Under Health and Safety Code Section 78700, an owner of nonresidential real property who knows, or has reasonable cause to believe, that a hazardous-substance release is on or beneath the property must give the buyer written notice before the sale.
Will tax be withheld when I sell commercial property by owner?
Possibly. In California, the buyer withholds 3 1/3 percent of the sales price by default, unless an exemption applies or the seller elects an alternative calculation; none is required at $100,000 or less. For a foreign seller, FIRPTA withholding generally applies at 15 percent.
How should I price commercial property for sale by owner?
Price from net operating income, cap rates and comparable sales. Apex’s analysis of CoStar data (Q3 2026) shows Inland Empire sale prices averaged 6.0 to 9.8 percent below asking over 12 months, depending on property type.
Do I still pay a commission if I sell commercial property by owner?
Not on the listing side, because you have no listing broker. A buyer’s broker may still ask you to pay a fee. If you agree, California requires that agreement to be in writing.
Thinking about selling?
Get a Free Opinion of Value First
Every sale starts with a defensible price. Robert Mendieta Jr., CCIM, with more than 20 years of commercial real estate experience, will review your income and comparable sales. Request a free opinion of value.
Apex is not a law, tax or accounting firm. Consult your attorney and CPA.
Call Robert: (951) 977-3251Or call Joseph Lombera, Commercial Agent + CMO · DRE #01971957: (909) 406-6538
Or request a free CRE consult below.
Sources (web pages accessed October 6, 2026): California Legislature · Civil Code § 1102, § 1103 and § 1624; Business and Professions Code § 10131 and § 10133; Health and Safety Code § 78700; Government Code § 8589.3; Public Resources Code § 2621.9; Revenue and Taxation Code § 11911 and § 18662 · current text. California FTB · Real estate withholding · updated January 7, 2026. IRS · FIRPTA withholding · updated July 21, 2026; Exceptions from FIRPTA withholding · updated July 15, 2026; Instructions for Form 1099-S (2026). LoopNet Help Center · FSBO listings and who can list · updated August 11, 2025. CoStar · Inland Empire Industrial, Retail and Office Capital Markets Reports · Q3 2026, dated September 30, 2026.
Robert Mendieta Jr., CCIM · Associate Broker · Commercial Division · DRE #01422904 · Joseph Lombera · Commercial Agent + CMO · DRE #01971957 · Apex Real Estate Services · 3750 E. Florida Ave Suite A, Hemet, CA 92544 · (951) 977-3251 · robert@apex-res.com