13 Recommendations for Commercial Real Estate Sales and Leasing.
1. Be patient. The marketing of your commercial real estate can take longer than you expect . Commercial real estate has a limited pool of prospects and therefore, your price and terms will always determine your marketing period .
2. Learn from the professionals in the commercial real estate industry. Seek their advice and counsel and always ask for a CCIM.
3. Develop cautious optimism. The right buyer or tenant will appear when the property or deal suits them. Be prepared to respond quickly if they make an offer on your property. Remember, the best offers usually come first, don’t assume that a better offer will come later.
4. Ask questions. When you think you have asked everything you can think of; take a break, make a plan and ask some more questions. An informed seller or landlord is a wise seller or landlord who is able to make good decisions that are best for them.
5. Look at your property from the buyer/tenant’s point of view. The more objective and unattached you can be about your property, the better you will be at making the right decisions about any offers.
6. Study the market/neighborhood and know it well. Every market/neighborhood is different and may not sell or lease at the same price or in the same amount of time as yours.
7. Learn how to financially analyze your property. Learn all you can about the “time-value” of money and how investors define value based on the property’s income.
8. Be prepared for the due diligence process. Any, some or all of the following may make take considerable time for the buyer/tenant to analyze before the closing or lease signing: legal/title opinions, environmental reports, surveys, lease/estoppel certificate reviews, financial records reviews and improvements and site inspections.
9. Know your bottom-line. If an offer gets close to your bottom-line, don’t lose the deal waiting for something better.
10. Understand the risks involved. There are no guarantees that your property will be sold or leased or that it will move quickly or that you will get the price and terms you want.
11. Learn all you can about how taxes affect the real estate you are selling or leasing. Consult with your accountant now and throughout the transaction.
12. Highest and best use. This may determine the maximum value for your property.
13. Offer incentives. There are many possible scenarios that you can use to give your property an edge over the competition by offering incentives that help them meet their objectives. Consult with your agent about how this can be accomplished.
Written by: Jim Baker, CCIM firstname.lastname@example.org