Tips on How to Sell Your Commercial Real Estate
Putting commercial real estate up for sale is very different from selling residential property. While location is a big factor in any real estate transaction, there are other considerations with commercial property sales. With residential sales, purchasers are looking for specific things that make it worth while for them. They may want access to good schools or local shopping. Some purchasers are looking for a particular layout or specific fixtures. With commercial property for sale, purchasers are looking at investment potential, raw square footage, tenant history and many other factors. There are some things you can do to help improve your chances of completing fast commercial property sales.
Collect all potential information on the area
The first thing to do is to put together a dossier on the area. Showcase the potential by providing information about other businesses in the area and financial background. Investors seeking commercial property for sale are often willing to look at properties that are run down and need substantial renovation, but it is best if you can provide properties that are in sound structural condition. Show comparative sales from other local properties, and projected profit information. These numbers need to be honest and verifiable. Show value trends for the area. Provide information about property sales in the area for the last five years. Compile a complete financial picture, to show to potential purchasers.
Put the information in an easy and readable format to make it easy for investors to determine potential returns. Before considering commercial property sales when you are no longer interested in property management, run all the numbers to get a good idea of the value. Commercial property values are not always directly related to similar sales or actual property values. Sometimes there are other factors that can influence the value of a property. If a building is completely rented, with a very low vacancy rate, and that can be documented going back several years, the low vacancy rate is a big selling point.
Long lease terms as selling point
Another thing to provide to prospective buyers is the duration of any current lease holders. If purchasers are looking for investment opportunities, and do not want to use the property for their own commercial enterprises, then long lease terms at good rates are a selling point. Alternatively, those seeking space for their own businesses will want something with no tenants, but placed in a phenomenal location. Different businesses need different things in a location, so be sure to market to the appropriate business demographic.
Flickr image credit to: rodtuk