5 Commercial Real Estate Selling Tips

Are you ready to sell your commercial property – apartment building, warehouse, etc.? According to J.P. Morgan, “The 2023 commercial real estate outlook indicates there may be challenges ahead. Retail is at a crossroads, and the future of office space is unclear. Plus, supply chain issues persist, and inflation is near 40-year highs, prompting the Fed to steadily increase interest rates.” The good news is that J.P. Morgan also reports that multifamily and industrial properties continue to perform well.

Regardless of the market, any commercial real estate seller’s goal is to sell their property quickly and at the best price possible. Just like selling a home, there are steps you can take to make your commercial property more appealing to buyers, resulting in a quicker sale and a larger profit.

First, you want to think like a buyer and consider what the various commercial property buyers will be looking for. For example, someone buying an apartment building will be more concerned with the inside appearance than someone buying a warehouse.

5 Commercial Real Estate Selling Tips You Can Use

#1. Order Your Title Report
As soon as you’ve decided to sell your commercial property, order your title report, which can take up to ten days.

#2. Gather Your Paperwork
Show buyers that you are organized and easy to work with by having all of your paperwork – ownership papers, profit and loss statements (if appropriate), permits, certifications, etc. – in hand before you put your property on the market. If you have tenants in your property, prepare a rent roll – a report that provides detailed info about the property, tenants, and rent.

#3. Create a Service History List
Show buyers that you are organized with a list of your leading service vendors, such as plumbers, electricians, window cleaners, etc. Show buyers you are diligent about maintaining your property with service history records.

#4. Prepare Your Property for Sale
Just like you can clean up, declutter, and stage a residential property for sale, you can do the same for a commercial property. Most buyers will be turned off by a dirty or poorly maintained building, so taking some time and money to fix the property up a bit can make the property sell more quickly and at a higher profit.

Here are a few ideas to consider:

• Fix anything that is broken – windows, doors, etc.
• Ensure the landscaping looks good – mowed lawn, no weeds, and trimmed bushes.
• Clean and declutter the interior
• Highlight your signage
• Check the roof for needed repairs
• Clean the windows
• Install energy-saving options, such as climate control. LED lighting, low-flow showerheads, etc. According to the EPA, on average, commercial buildings waste about 30% of their energy. A more energy-efficient building will help new owners save money.
• Spruce up the parking lot by resealing, repairing potholes, and repainting lines.
• Stage the property to allow your buyers to visualize the property’s potential. For example, a fresh coat of neutral paint, appealing furniture, and potted plants in the lobby.
• Consider adding or upgrading washers, dryers, and vending machines in an apartment building
  

#5. Determine the Fair Market Value of Your Property
Commercial real estate valuation is more complicated than residential real estate valuation, but determining the value is crucial for both investors and lenders. There are several methods used to determine commercial property value:

• Cost Approach
• Sales Comparison Approach
• Income Capitalization Approach
• Value Per Gross Rent Multiplier
• Value Per Door
• Cost Per Rentable Square Foot

The best way to determine a fair market value for your property is to work with an experienced commercial real estate agent.

Get More for Your Commercial Property and Sell it Faster! 

With over 25 highly successful years selling commercial properties in Berks County and beyond, Pete Heim has the knowledge, experience, and connections to move your commercial property FAST and for a higher price. If you’re considering selling your commercial property, call Pete today at 610-745-3378 or 610-898-1441 or connect with him online.