Top 5 Tips for Getting Your Commercial Property Ready to Sell

It’s time to sell! Maybe your company is quickly outgrowing your current location, you are ready to get out of CRE investing, or perhaps you’re retiring from a business you’ve owned for decades. Let’s take a look at a few tips that will help you sell your commercial property quicker and for the price you want.

Curb Appeal is King!

Real estate agent is drawing the chart of the real estate market on the glass screen.Take a really good look at the outside of your building. Do you need to spruce up the landscaping? Maybe a good power washing or a coat of paint would make your property look fresh and appealing. Clean the windows and replace any that are broken. And, don’t forget about that parking lot. Fix those pot holes! Making your property as pleasantly appealing as possible gives potential buyers a great first impression. A neglected building can discourage buyers and affect the sale price.

As in residential real estate sales, make sure the roof is in good repair and is clean. This is one place that should you have to put money into repairs, you are sure to get it back at the time of sale.

WOW Potential Buyers

A new coat of paint inside can really help sell a property by making the interior look clean and well maintained. Make all minor repair and have floors and carpeting cleaned. If there are any major repairs that need to be handled, it is best to make them before putting the property on the market.

Clean up the clutter. Be sure work areas are neat and uncluttered. Store away those boxes of documents, clean up in the common areas (especially that break room), and communicate with employees or tenants that their support in maintaining a clean environment would be greatly appreciated.

Hand writing the text: Pricing StrategyWhat’s Your Pricing Strategy?

The best way to get started is to find comparable properties close to your property. If you can find them, look for how far they are from your property, what those properties sold for, and the date of the sale. Sometimes this is difficult as many of the commercial databases are not available to the public.

Check out the competition. If you have been able to identify properties for sale that are close to you, take a look and see what they are offering. Pay close attention to lease rates, amenities, and location. This will give you an idea of how you stack up to the competition. While comps are great, investors will also be interested in the building’s ability to generate income.

The Capitalization Rate (or CAP rate) is the rate of return which takes the amount you invested and compares it to the annual income of the property. For example: If you purchase a property for $1,000,000 and the property earns you $100,000 per year, your CAP rate is 10% – a very healthy return to be sure! Consider what CAP rate your building will yield when developing your pricing strategy.

Understand the Investor’s Viewpoint

Focus Group. People with Magnifying glassFirst and foremost, make sure your listing information is up-to-date and accurate. It’s much easier to negotiate a strong contract if your information cannot be disputed.

Know your potential investors’ preferences. Are they an investor that is looking for a turnkey property that is 100% leased or are they willing to make improvements to the building and/or the tenant mix? Analyze your tenant mix so that you know where you stand before talking to investors.

It’s always important to highlight your location’s attributes. Be honest and make sure to note recognizable cross streets that are close to your property, highway proximity, public transportation, and traffic generation numbers. Demographics are also helpful information for a potential investor to have – population, household income, and age are among the highest ranking statistics investors look for.

Find a Dynamite CRE Broker

If you are getting overwhelmed just reading this, perhaps partnering with a seasoned commercial real estate broker would alleviate the stress of selling your property. The relationship you build with your CRE broker is crucial. A lot is at stake with any CRE transaction and the process is complicated to maneuver through. Find someone you can trust to have your best interest at heart. When choosing a broker to partner with, be sure to look for these skills:

  • Expert in local market knowledge
  • Embraces current technology for marketing CRE
  • Worldwide presence for attracting qualified buyers
  • Strong presence in the community
  • Customized marketing package, both digital and traditional
  • Skilled in contract negotiation
  • Knowledgeable in best practices for market research

To learn more about selling commercial property in the Greater Raleigh Area, contact the experts at Craft Commercial, a locally-owned real estate company that has served the Triangle for over 30 years. Contact us at 919-446-5000 or info@craftcommercial.com.

 

48 thoughts on “Top 5 Tips for Getting Your Commercial Property Ready to Sell

  1. I imagine when you are trying to sell any space, whether it is commercial or private, you would want to keep it clean and organized when potential buyers want to see the space. I especially agreed with the mention of cleaning clutter and making sure documents are sorted and boxed. It is so important that businesses do their best when putting their commercial space on the market.

    1. I’m looking at selling my building there is nothing that looks like it it’s 2400 square feet ceilings are 14 ft feet high it’s gorgeous inside originally it was a tanning salon I converted into a spa with a cappuccino bar the waiting area is 1000 square feet I’m trying to sell it for what I think it’s worth to me there’s no buildings for sale in Winnipeg I’m on Portage Avenue the main strip what can you do I want 1.5 m

      1. Alexandria thanks for your comments. Sounds like you have a very unique property. I would recommend you seek a really qualified commercial real estate professional in Winnipeg; someone you can trust, and let them help you put your place on the market. Best of luck to you – Sonya

    2. Hi my name is Melvin and I have a building I had for 10 years it’s in Winnipeg Manitoba 2400 square feet
      Ceilings are 14 feet I it’s a gorgeous salon right now it’s a tanning salon and I’m changing into a day spa I’m not sure if it’s going to work or not but I’m trying to get the highest dollar for my building I’m really considering it put up for sale can you help me thank you

  2. It’s good to know that when it comes to selling commercial that one thing people can do to be prepared is figuring out what their pricing strategy. I like how you mentioned that to do this is by checking out who their competition is and then go from there to decide which will be the best for them. Personally, I think this is a good way for people to figure out what it the best way to sale their property fast.

    1. Thanks for commenting Harper. It’s always best to check out the competition! Thanks – Sonya

  3. That’s a good idea to go and see other commercial properties near you that are for sale. Another good idea would probably be to find a real estate agent or someone like that who would be able to know more about the market than you possibly could. The trick would be finding the right one for your real estate property.

    1. Commercial property transactions often take a longer period of time than residential so it is VERY important that you establish a good relationship with your broker and their team. Thanks for the comment Amanda! – Sonya

  4. I like your advice on making sure all the clutter is organized or put away. You want to make sure you create an ideal property when possible and leave a lasting impression on potential buyers. First impressions are a big deal, so make sure you leave them feeling happy about checking out the property.

  5. Making sure you WOW potential buyers is an excellent point. A family friend is looking to sell his practice/building. I’ll have to share your blog with him.

    1. Thanks Max. We really appreciate you sharing our post! – Sonya

  6. I agree that the look of your curb matters when you’re selling your property. If I am the buyer, it’s something I’d notice right off the bat, and take into consideration. Thanks for the tips!

  7. These are really useful tips on selling your commercial property. I agree that, Multiple factors affect while selling a house. appreciate your post, thanks for sharing..!!

    1. I appreciate your kind words. If you subscribe to the blog you’ll get our posts automatically! Sonya

  8. It really helped when you mentioned that checking out competition can be helpful when selling a commercial property. Just like what you said, learning from the strategies of other sellers can help us improve our odds. My aunt is selling her coffee shop because she’s moving to a bigger location. She wants to make the most of it because that was her first business venture and it means a lot to her. I’d be sure to share these tips with her so she can pick up a few pointers, too. If it comes to it, we’ll get help from a professional to make sure the sale goes as smoothly as possible. Thanks a bunch!

    1. Thanks Rajpal! I think you are right about the CRE investor group. Thanks for sharing – Sonya

  9. I like how you mentioned that a new coat of paint can help the interior look clean and well maintained. My friend works at a small business, so I think these tips could really help him and his boss spruce up the place; they may be moving locations soon, so I’ll definitely share this with them.

  10. My sister is planning to have a commercial building of her own for retirement. It was explained here that it’s important to find a great broker. Moreover, it’s advisable to hire professionals when planning to have a commercial building.

  11. I liked it when you said that it is easier to negotiate a strong contract if the information disclosed to the investors are accurate and up to date. I will mention this to a friend since I heard that he is planning to sell a dental office. To be honest, I do not know how long he has had that office, but I am sure that he has a record. He just needs to pull it out if he wants to sell it ASAP.

    1. Thanks Lavi for sharing this story. If your friend is in the Raleigh area, have them give us a call! We’d love to help! — Craft Commercial

  12. Selling a commercial property is a tricky affair. You should anticipate that purchasers are giving attention. The fact, the lifespan of a human assumption is ~8secs. Thus, as a seller, you have to realize this thing in order to position your sale for victory. Sometimes, it is good to push the property directly to the potential buyers. Figuring out the buyers searching criteria is essential to make the deal successful. Crafting the property story is an advanced marketing strategy. You can also take the advantage of social media marketing. Besides doing these things, you need to consult a
    licensed real estate envoy to get handy recommendations.

  13. I agree that you should ask your agent what their pricing strategy is. That’s a good place to get started when selling your property. You should check out the competition, like you said. That will help you get a good idea of how much your property should list for.

  14. One could get a lot of profit by selling a commercial property. A lot of factors influence the profits associated with such kinds of business including the location and quality of the structure. However, with the proper marketing strategy, one could make a lot of money by selling such profit. I also agree that experienced and certified professionals should be hired to widen the profit associated with such business. One could also inform a property acquisition company.

  15. One of my friends, Jordan, is very interested in commercial real estate and business. I like how you mentioned that finding a great CRE broker can help him understand the real estate process and make things easier for him. Thanks so much for all the great tips on selling commercial property. These tips could also help buyers for sure!

  16. My brother wants to open his own shop and he’s now looking for a space to buy. It was explained here that it will be best to talk to experts who understand the local market and skilled in contract negotiation. Moreover, it’s recommended to hire professionals when considering buying commercial property for sale.

    1. That’s correct! An expert has the tools and experience to assist in locating and acquiring the perfect property for your business. Thank you!

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