Selling a commercial real estate property requires things to line up properly to get the most out of your investment. Retail spaces can be one of the most attractive options in commercial real estate, because they can lead to long-term residents and be an even better long-term investment.
But when the time comes to sell retail space, it takes the right buyer inside the right market to make sure that you get the most out of the sale. Getting those stars to align requires good timing, but you can set up that timing to work in your favor through careful planning. Here’s a look at a few things to be aware of when selling your retail space.
Property Evaluation & Market Analysis
A property evaluation means going through the property and evaluating its condition. This includes all of the physical aspects of the property, and checking in on anything that might have a negative impact on the impending sale. This might lead to repairs or other updates, but is crucial to making it as desirable as possible. The market analysis is also crucial, as it can give you an updated look on things like leasing rates, available inventory, and other trends concerning the sale.
Determining Your Market Value
After performing a property evaluation and market analysis, it’s time to use that information to come up with the value of your property and where it fits in the market. This pricing comes through comparative sales, replacement cost, and capital income. This value is only an estimate, as the market can change and fluctuate throughout this process. However, these trends will be taken into account, as the appraiser generally checks in with local commercial real estate agents to unearth those trends.
Preparing For Sale
Taking all of the information from the valuation, the property likely has a list of recommendations for the seller to perform before putting the property on the market. Depending on the expense of repairs and how extensive they are, it will have an impact on how soon the property will be able to be put up for sale. It can also impact the price.
Get the Right Marketing Plan
Taking the time to develop a detailed marketing plan can speed up the process and look more professional. This plan can give potential buyers tons of information about the property that can help with the purchase. This can include everything from the property’s floorplan to annual operating data to zoning data – or anything else that might seem pertinent to the sale. Providing as much information as possible, through various marketing channels, will ensure you reach the as many potential buyers as possible.
Negotiation & Document Review
Negotiating the offers on the property is one of the vital aspects of selling it. Working with an experienced and knowledgeable commercial real estate agent can go a long way in this process. Once the price and terms are successfully agreed upon, it’s critical to consult legal experts to make sure all rules and regulations are followed before signing the documents.
Selling a retail space is a complex process that needs preparation. Getting it right is an in-depth process, but there are options to help navigate it. For more information on buying or selling a retail space, contact the experts at Denver Commercial Properties today.