Preparing for a Commercial Real Estate Sale: A Comprehensive Guide

March 12, 2024

6 Steps to Prepare for Commercial Real Estate Sale Beyond Selecting the Right Broker

Selling commercial real estate can be an overwhelming process. As a property owner, it’s understandable that parting ways with your asset can feel like detaching from something you’ve worked hard to build. However, with the right preparation and guidance, you can navigate the sale successfully and ensure a smooth transition. In this comprehensive guide, we will walk you through the essential steps to prepare for a commercial real estate transaction.  While selecting the right broker is critical, these additional steps can help you maximize the value of your asset.

Step 1: Conduct a Property Audit/ Review

Begin by conducting a thorough review of your property. Take into account not only its physical condition but also factors such as location, nearby amenities, and accessibility. Hiring a professional to conduct this audit can provide expert insight and ensure a comprehensive evaluation.

Commercial Real Estate for Sale

Step 2: Gather Property Documents

Collect all relevant documents related to the property, including purchase documents, lease agreements, income statements, and maintenance records. Additional documentation, such as environmental studies, property tax bills, zoning details, and capital improvement records, will provide potential buyers with a clear understanding of the property’s financial performance and any potential issues.

Step 3: Determine the Property's Value

Accurately determining the value of your property is crucial. Factors such as location, size, condition, and current market conditions play a significant role. Comparing your property to recently sold properties in your area can establish a baseline for valuation. For a more precise assessment, consider hiring a professional appraiser.

Step 4: Think About the Type of Transaction

Different transaction types offer unique advantages depending on your circumstances. Consider whether an outright sale or a lease-back arrangement would be more beneficial. Alternatively, a 1031 exchange could align with your long-term investment goals by allowing you to defer capital gains taxes. Understanding the pros and cons of each option will help you choose the most suitable transaction type.

Step 5: Choose the Right Time to Sell

Timing is critical when it comes to selling commercial real estate. Study market trends and cycles to determine the optimal time for your sale. While market fluctuations are inevitable, having a basic understanding of the market’s direction can inform your decision. Consider external factors, such as the economy, interest rates, and commercial real estate forecasts, to further guide your timing.

Step 6: Ehancing Your Curb Appeal

First impressions matter in real estate sales. By making small improvements, you can significantly increase the perceived value of your property. Ensure your property is clean, well-maintained, and properly landscaped. If necessary, consider minor renovations such as painting or upgrading fixtures. These steps will attract more potential buyers and potentially lead to a higher selling price.

Commercial Real Estate Building for Sale

Choosing the Right Broker for Commercial Real Estate Sale

Of course, beyond the above steps to prepare for sale, a critical step is to hire the right broker  or advisor.  Navigating a commercial real estate sale can be complex, but you don’t have to go through it alone. Partnering with an experienced broker or advisor can make a world of difference. They possess market expertise, can advise on valuation, and negotiate the best possible deal on your behalf. With their guidance, you can successfully navigate each step mentioned above and maximize the value of your asset in a seamless transaction.

In conclusion, preparing for a commercial real estate sale requires careful consideration and planning. By following these steps and enlisting the support of a knowledgeable professional, you can confidently move forward and achieve a successful sale. While it may demand time and resources, the potential return on your investment will make the effort worthwhile.

SkyView Advisors in Commercial Real Estate

In navigating the dynamic landscape of the self-storage industry, the invaluable role of SkyView Advisors becomes abundantly clear. Our organization offers a wealth of expertise to guide new entrants and seasoned players alike through variable market trends, assisting in the understanding of key asset classes and strategic planning. As specialists in self-storage, our industry insights help businesses effectively align themselves with factors that shape the market, seizing lucrative opportunities when they present themselves.

SkyView Advisors is a national commercial real estate brokerage firm built on the values of innovation, accountability, preparation, resilience & attention to detail. SkyView’s revolutionary new model is the most salesperson-centric platform in the industry, ensuring elite execution on every transaction through its proprietary 252-point process and modern technology-based platform.

With a relentless commitment to innovation, SkyView harnesses technology to create efficiency in everything it does, leading to a more frictionless experience and delivering better results for clients.

If you want more information of selling your commercial real estate property, please contact us on our website

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