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Baker's Dozen Tips for Commercial Real Estate Sales and Leasing

By
Commercial Real Estate Agent with Baker Commercial Group

  

1. Be patient, but don't let the right opportunity pass you by. The marketing of your commercial real estate can take longer than what you would expect or hope for. Good things (higher prices and better terms) come to those who have studied the market and have decided in advance what the realistic price and terms are for their property. Price your property too high and you will not be likley to get an offer. Always price it as close as possible to it's real value.

 

2. Learn from the professionals in the commercial real estate industry. Seek their advise and counsel (and always look 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 that is close to your expectations. Here's an example: a buyer is ready, willing and able, but the offer doesn't quite meet the owner's expectation. The owner passes on the offer and later calls us back to see if we can get the buyer to remake their offer again; however, it's too late. This is a typical scenario that happens several times each year in our firm.

  

4. Ask lots of 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. Learn about the legal, statistical, financial and improvements/inspections information that are needed to facilitate the sale or lease.

  

9. Know your bottom-line. If an offer gets close to your bottom-line, don't lose the deal waiting for something better that may not happen.

  

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 effect the real estate you are selling or leasing. Consult with your accountant now and throughout the transaction.

  

12. Highest and best use. Know what the highest and best use is for your property. This will determine your property's maximum value and the it's marketability.

  

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 to best accomplish this together.

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