Selling Commercial Property

Remember what you went through when you purchased your property. Imagine yourself as the buyer and decide what factors interest you in something similar.

You want to present a building that is clearly well-maintained so there is no room for deductions. You also need evidence to support your listing price. Just like in residential real estate, part of the buyer's decision is logic and part is emotional. Make your property look like the current owner has pride of ownership and is organized; the property will appeal to a wider range of buyers.

Anticipate objections and have the answers as part of your initial presentation. Your ideal sales package will include the building's history, the game plan as implemented, the current situation, and projections for the next five years. You will impress the buyer by including your original photos, tenant information spreadsheet, and initial building condition reports. Also include your current tenant spreadsheet along with comparisons showing the percentage of increased revenue. Make your buyer sign an NDA before viewing the package; this is not public information.

Be able to compare the condition of your building to that of your competitors. Intero as your broker, along with help by your appraiser, will show you who your competitors are and prepare a detailed market comparison for the buyer. This is your opportunity to outshine the buyer's alternatives. Even if your competition is newer, location, services and amenities can make up for a host of architectural innovations. Focus on the appeal of tenant space and its amenities.

In creating a superior building package, a larger investor will be willing to pay more for it, especially if the buyer is exchanging out of another property. This type of buyer is looking for a building that's properly set up and easy to maintain. Your cap rate can be higher than normal on the buyer because larger investors have lower rate of return requirements.

Prepare the best package you can without disclosing any details pertaining to your tenant leases. Create and use eyewash (graphics and photos) effectively to generate interest in your property. Simplify your spreadsheet data so that it can be understood at a glance. Highlight your building's above-average performance, making it leap off the page at the buyer.