Back Home5 useful tips when selling your commercial property
Commercial real estate (CRE) is a good investment that helps to diversify your asset portfolio. And over time, you may find yourself in a position to sell – whether it’s due to an increase in property value or a shift in your business strategy.
When you decide to put your commercial property in Texas up for sale, keep the following tips in mind:
1. Know the market
Selling CRE isn’t exactly the same as selling residential property. Sellers have to know what a particular investor is looking for in terms of CRE.
For instance, is an investor looking for a turnkey property that is ready to be rented out after purchase? Or perhaps this investor is amenable to making a few renovations and buying the property as soon as possible?
Depending on the commercial property in question (e.g., office space, apartment, retail establishment), one has to be deliberate in attracting a specific kind of investor.
After getting intel on the potential market, the listing should then be written in such a way that it emphasizes useful information for potential investors. Highlight the best attributes of the commercial property (but don’t exaggerate) and keep the information regularly updated.
2. Come up with the optimal pricing strategy
Sellers should take some time to come up with the best price for CRE.
The first step is to look at comparable properties in the area and their respective price tags. Review recently sold commercial properties and their date of sale as well.
Check out the attributes of each commercial property. Are there any impressive amenities that make it more competitive? Is it strategically located, giving it access to a sizable number of the local population?
Additionally, make sure to factor capitalization rate into your calculations. This is particularly helpful for savvy investors to get a better sense of how much revenue a piece of commercial property will generate over time.
Taking into account all of this information will help you zero in on the best price for your commercial property.
3. Curb appeal still counts
It isn’t all about technical specs and market analysis. Sellers shouldn’t forget about curb appeal, even for commercial properties. This is one thing that the latter has in common with residential properties.
Here are a few ways to keep curb appeal in tip-top condition:
- Prioritize cleaning or renovating the side of the property that faces the street, or the area the public sees first
- Fix any damage to the roof and make sure it’s free from any type of debris
- Update or replace signage; if the latter features an old and tired design concept, it’s time for a refresh
- Consider regularly pressure-washing the exterior features of your property – especially the entrance – so it looks sparkling and dirt-free
CRE owners must make buyers feel like the property has been well maintained. No one wants to see dirty windows or cracked, peeling paint on the property they’re about to buy. And if investors can’t even set their eyes on what you have to offer, a low final sale price could be the least of your worries.
For Sale by Owner (FSBO) is possible if you’re willing to do the work
It’s not a common approach, but some experienced sellers feel more confident about pulling off a successful FSBO.
The usual reason for going down this path? Less expenses overall by avoiding the broker commission. However, it only works if one puts in some serious time researching and marketing the commercial property.
You will need to advertise through a variety of channels, including FBSO listings to more popular platforms like Facebook. Depending on your market, you may have to get the word out through the local papers as well.
Working with a broker is still best
Selling CRE is no walk in the park, even for sellers who have done it before. That’s why many prefer to hire the services of a CRE broker. A seasoned professional can help you breeze through all the tips mentioned in this blog and then some.
Consider the following attributes when looking for a CRE broker:
- Strong local market knowledge
- Tech-savvy, especially in marketing commercial property
- Sharp negotiation skills
- Flexible in many facets – can go the extra mile or adjust to changing circumstances
- Available whenever you need advice or technical support
- Energetic personality
Our CRE brokers from Berkshire Hathaway HomeServices Caliber Realty embody all these traits. We have over 40 years of experience in commercial real estate in and around College Station, Texas. Please feel free to reach out to our team via phone 979.694.8844 or email at sales(at)bhhscaliber(dotted)com.
