Selling or leasing commercial property requires careful planning and consideration to ensure a successful transaction. Whether you’re a property owner looking to sell or a landlord seeking to lease, understanding the key factors involved can help you navigate the process effectively. In this blog post, we will explore important considerations and offer valuable insights to help you maximise the value of your commercial property and secure the right deal.
Understand Market Conditions
Before selling or leasing your commercial property, it is essential to have a clear understanding of the current market conditions. A commercial agent will be able to provide you with the most recent comparable information for sales and rental rates to determine a realistic pricing strategy. They will also be able to advise on how competitive your property will be in the market and what potential buyers/lessees are active at that point in time.
Property Valuation and Presentation
Engage with a commercial agent/surveyor to obtain a comprehensive property valuation to determine its market worth. Consider factors such as location, size, condition, amenities, and potential for future development. Additionally, ensure your property is well-maintained and presentable. Enhance its curb appeal and address any necessary repairs. First impressions matter, and a well-presented property is more likely to attract potential buyers or tenants.
Targeted Marketing and Advertising
Develop a targeted marketing and advertising strategy to reach potential buyers or tenants effectively. Leverage both online and offline channels, such as commercial real estate websites, social media platforms, signage, and local publications – the majority of which will be provided as standard by your agent. An experienced agent will be able to showcase the unique features and advantages of your property, such as its location, accessibility, amenities, and potential for business growth. Utilise high-quality photos, videos, floor plans and detailed descriptions to capture attention and generate interest. Consider engaging the services of a professional photographer or videographer to showcase your property in the best possible light – something Broadlands provide as part of an instruction if suitable.
Negotiation and Due Diligence
During the negotiation phase, be prepared to discuss terms such as purchase price, lease rates, lease duration, and tenant improvement allowances. Remain open to reasonable offers and be flexible in finding mutually beneficial solutions. Conduct thorough due diligence on potential buyers or tenants, including financial background checks and reference verification, e.g. poor tenant selection can lead to numerous issues further down the road including potential default on rent payments or negatively affect property values as the tenant is seen to be at high risk of default. Similarly, buyers or tenants should perform due diligence on the property, inspecting its condition, reviewing documentation, and assessing any potential risks or liabilities. Engage the services of professionals, such as real estate agents and building surveyors, to ensure a smooth and transparent process.
Legal and Financial Considerations
Once an offer has been agreed in principle, your agent will prepare Heads of Terms and once these are agreed between the parties (sale or lease), they will be sent to your legal advisors to form the basis of the sale or lease agreements. An experienced legal advisor can be worth their weight in gold and can streamline the sale or letting process.
Selling or leasing commercial property requires careful attention to market conditions, property valuation, marketing, legal considerations, negotiation, and due diligence to achieve a successful outcome. Luckily for you we have the experience and market reach to make the difference. Contact us today to see how we can help you.