When it’s time to sell a commercial property, owners face a number of issues residential property owners don’t have to deal with. That’s why it’s generally a good idea to develop a relationship with a commercial property specialist well before a property is actually marketed. When specific steps are taken early in the sales process, the likelihood of a more profitable outcome is increased.
Marketing a commercial property has become increasingly complex in recent years, which further complicates the sales process for owners. Commercial real estate experts routinely point out five strategies sellers can use to obtain the highest net when marketing a commercial property.
Make Sure the Property is Ready to Market
In the vast majority of cases, a building’s curb appeal is going to make a significant difference in the ultimate selling price. Simply cleaning the building’s exterior can make a major difference in how a prospective purchaser perceives the property’s value. Other steps, like updating landscaping or sealing the parking lot pavement, will also have a positive effect on buyers.
Know Your Buyers
Marketing a property today requires sellers to fully understand potential buyers. That means working closely with a real estate professional to develop an idea of who the property’s ideal buyer is and taking steps to make sure that the buyer is aware of the property’s availability.
This process isn’t always easy, as the ideal purchaser may not easy to pinpoint. Some types of businesses require unique strategies to properly market. That’s another reason it’s important to work closely with marketing experts who can demonstrate past successes with similar properties.
Understand the Local Nature of Commercial Real Estate
Fully grasping the local business culture is vital when marketing a commercial property. Two essentially identical buildings set in different areas will often be priced quite differently. The location will dictate value as much as the property itself.
For example, a manufacturer will need easy access to highways, railroads, and airports to ensure their products can be moved quickly and efficiently. On the other hand, a restaurant will need to be located in a highly visible space that includes plenty of parking for patrons.
Explore Various Pricing Strategies
Real estate professionals typically cite past sales of comparable properties when recommending asking prices. However, it’s also important to look at similar properties that are currently available when establishing an asking price for a commercial property.
Local real estate experts will also consider other factors when working with a commercial property owner to establish an asking price. Neighbourhood trends, for example, will often impact the price of a property. When an area is rapidly increasing in value, the price has to be set accordingly.
Be Willing to Discuss Making Changes to the Property
In many instances, a building may no longer be providing the type of return a buyer may be looking for. It pays to be willing to explore different ways to enhance the value of a property. If a use change will greatly enhance the value of commercial property, don’t be afraid to discuss how updating the property might be accomplished.
Take the First Steps Now
If you’re currently considering marketing a commercial property, take the time now to contact a marketing professional. With expert input, it will be easier to decide how to move forward with selling any type of commercial real estate.