Essential: Selling Commercial Real Estate

Tips for selling commercial real estate

Tips for Selling Commercial Real Estate

When selling commercial real estate, it’s essential to have a comprehensive list of items and considerations to ensure a successful transaction. Here’s a list of important things to consider when selling commercial real estate:

  1. Property Information:
    • Property address, legal description, and parcel number.
    • Property size (square footage or acres).
    • Zoning classification and permitted uses.
  2. Financial Documents:
    • Profit and loss statements.
    • Tax returns.
    • Rent rolls and lease agreements.
    • Property expenses and maintenance records.
    • Recent appraisals and valuations.
  3. Market Analysis:
    • Current market trends and comparables.
    • Competitive analysis of similar properties.
    • Local economic factors affect property value.
  4. Property Condition:
    • Inspection reports, including any necessary repairs.
    • Environmental assessments (e.g., Phase I and II reports).
    • Compliance with building codes and regulations.
  5. Marketing Materials:
    • High-quality photos and videos of the property.
    • Brochures and property information packets.
    • Online listings on commercial real estate websites.
  6. Pricing Strategy:
    • Competitive pricing based on market conditions.
    • Consideration of the property’s income potential.
  7. Legal and Contractual Documents:
    • Purchase and sale agreement.
    • Title deeds and surveys.
    • Escrow instructions and closing documents.
    • Any legal restrictions or encumbrances.
  8. Tenant Communication:
    • Notify tenants of the sale.
    • Ensure access to showings and inspections.
  9. Real Estate Professionals:
  10. Due Diligence:
    • Provide access for potential buyers to conduct due diligence.
    • Respond promptly to buyer inquiries and requests.
  11. Closing Preparation:
    • Coordinate with title companies and escrow agents.
    • Prepare for property transfer and funding.
  12. Transition Planning:
    • Communicate with tenants about the change in ownership.
    • Address any lease agreements and security deposits.
  13. Marketing Strategy:
    • Advertise the property to a broad audience.
    • Utilize both online and offline marketing channels.
  14. Negotiation Skills:
    • Be prepared for negotiations on price and terms.
    • Understand the needs and motivations of potential buyers.
  15. Post-Sale Transition:
    • Ensure a smooth transition of ownership and property management.

Remember that selling commercial real estate is complex, and it’s crucial to work with professionals who have experience in this market to navigate the process effectively. Talk to us and get a: Free Asset Analytics for your property in Southern California.

Contact: Alwin Morgenstern Cell: +1 (949) 285 1310 or Email: Alwin@morgensternteam.com