Understanding the Expression of Interest Process and Regulations in Victoria
If you’re buying or selling commercial property, you’ve likely come across the term Expression of Interest (EOI). It’s one of the most common methods used to sell commercial real estate in Australia, particularly for investment properties and premium commercial assets.
Understanding how an EOI campaign works can help both vendors and purchasers make informed decisions throughout the sales process.
What is an Expression of Interest?
An Expression of Interest is a sales campaign where interested buyers are invited to submit a confidential written offer by a specified closing date.
Unlike an auction, where bidding takes place publicly, an EOI allows buyers to prepare their offer privately, including the purchase price and any conditions they wish to include.
The vendor then reviews all offers received and decides whether to:
- Accept an offer.
- Negotiate with one or more interested parties.
- Invite selected buyers to submit an improved offer.
- Decline all offers if they do not meet expectations.
An EOI campaign provides flexibility for both buyers and sellers while encouraging strong competition among qualified purchasers.
Why do Vendors Choose an EOI Campaign?
An Expression of Interest campaign is often used when selling:
- Multi-tenanted commercial investments.
- Retail, office or industrial properties.
- High-value commercial assets.
- Properties where market demand is expected to generate multiple offers.
Rather than setting a fixed asking price, the campaign allows the market to determine value through competitive buyer interest.
How Does an EOI Work?
A typical commercial property EOI campaign includes:
- Marketing the property over a set period, often 30 days.
- Conducting inspections and providing due diligence information.
- Buyers submitting confidential written offers before the closing date.
- The vendor reviewing all submissions with their commercial real estate agent.
- Negotiations taking place with preferred purchasers if required.
In many cases, the highest offer is not automatically accepted. Vendors also consider factors such as settlement terms, finance approval, due diligence conditions and the buyer’s ability to complete the purchase.
How to Participate in an Expression of Interest as a Potential Buyer
If you’re interested in purchasing a commercial property being offered via Expression of Interest, it’s important to be prepared before the campaign closes. Unlike an auction, where bidding happens in real time, an EOI requires buyers to submit their strongest offer by the advertised closing date.
To improve your chances of success:
- Review the Information Memorandum and Contract of Sale carefully.
- Conduct your due diligence, including financial, legal and building investigations where appropriate.
- Arrange finance or ensure you have funding in place before submitting an offer.
- Consider the property’s income, lease terms, outgoings and future investment potential.
- Submit a clear written offer that includes your proposed purchase price, settlement terms and any conditions.
Once the Expression of Interest period has closed, the vendor will review all submissions. They may accept an offer, negotiate with one or more buyers, or invite shortlisted purchasers to submit an improved offer. Being well prepared and presenting a competitive, well-structured offer can strengthen your position during this process.
View our current commercial properties for sale via expression of interest:
183 Weston Street, Brunswick East
Regulations in Victoria
In Victoria, commercial property sales conducted by Expression of Interest are generally governed by the Estate Agents Act 1980 (Vic), the Sale of Land Act 1962 (Vic) and other applicable legislation relating to the sale of commercial real estate.
Unlike residential property transactions, there is generally no statutory cooling off period for most commercial property purchases once contracts have been exchanged. Buyers should therefore complete their financial, legal and property due diligence before submitting an offer.
Commercial property contracts may also include specific terms relating to finance, due diligence, GST, lease assignments and settlement. Purchasers should obtain independent legal and financial advice before lodging an Expression of Interest or signing a Contract of Sale.
Is an EOI Right for Your Property?
For vendors, an Expression of Interest campaign can create competitive tension, maximise market exposure and attract genuine buyers without limiting the sale to a fixed asking price. It also provides flexibility during negotiations, allowing vendors to consider not only the purchase price but also the strength of each buyer’s terms and conditions.
For buyers, an EOI provides the opportunity to submit a carefully considered offer based on their own assessment of the property’s value, income potential and long-term investment objectives. Unlike an auction, buyers can present a confidential offer that reflects both price and commercial terms.
Whether you’re selling a premium property on a retail strip, office building, industrial facility or multi-tenanted commercial investment, an Expression of Interest campaign can be an effective method of achieving a competitive outcome.
Considering selling your Commercial Property in Melbourne?
If you’re considering selling a commercial property and would like advice on whether an Expression of Interest campaign is the right strategy, contact the team at CPN Commercial Group. We can help you understand the process, develop a tailored marketing campaign and position your property to attract qualified buyers.
