Top Strategies to Successfully Sell Commercial Real Estate

Selling commercial real estate requires a different strategy from residential properties. Successfully selling a commercial property is complex and requires both knowledge and experience. Understanding the entire process is crucial to securing the best price and positioning yourself strategically for future investments.  

Whether you are an owner selling independently or an agent representing a client, employing effective strategies is essential. To achieve the best deals and expedite closings, you must excel in marketing and have a reliable method for identifying potential buyers. 

What is Commercial Real Estate 

Commercial real estate (CRE) involves properties designed and utilized exclusively for business-related purposes or to provide workspaces. These properties are primarily leased to tenants who use them to conduct income-generating activities. CRE includes a broad range of properties, such as office buildings, retail spaces, warehouses, and industrial facilities, all serving various business functions. Commercial real estate focuses on facilitating business operations, contributing significantly to economic activity, and providing essential infrastructure for commercial enterprises. 

Different Types of Commercial Real Estate 

In commercial real estate, there are various types of properties available for sale. The main categories include multi-family complexes for rentals, business office spaces, manufacturing and industrial facilities, raw land, farming properties, and hospitality venues. 

Additionally, some commercial properties are considered mixed-use, combining different functionalities. Each type of commercial real estate offers its own set of benefits and challenges. Here are some examples of commercial properties: 

1. Office Spaces: Buildings designed for businesses, ranging from high-rise office towers to smaller office complexes 
2. Retail and Malls: Properties dedicated to retail businesses, including shopping malls, strip malls, and standalone stores 
3. Restaurants and Eateries: Spaces specifically tailored for dining establishments, from high-end restaurants to fast-food outlets 
4. Industrial: Warehouses, factories, and properties for manufacturing, distribution, and storage 
5. Multifamily: Apartment buildings and complexes that accommodate multiple families, often overlapping with residential real estate 
6. Special Purpose: Unique-use properties like schools, hospitals, churches, and car washes that don’t fit into standard categories 

How to Get into Commercial Real Estate 

Getting into commercial real estate requires a similar licensing as selling residential properties. However, those who learn to sell commercial real estate develop a unique skill set, focusing on making business deals, negotiating with businesses, and finding the best properties for specific needs. Beyond obtaining a license, it is crucial to work at a brokerage specializing in commercial real estate. 

Starting in commercial real estate begins with collaborating with experienced agents. Some agents choose to establish real estate investment trusts and manage extensive property portfolios, leveraging their expertise to oversee large-scale investments. 

How to Sell Commercial Property

When considering to sell commercial real estate, you must first decide on your approach. One option is the for sale by owner (FSBO) model, which offers potential benefits but also comes with risks if you lack experience. 

Alternatively, you can enlist a commercial real estate broker to handle marketing, photography, and buyer interactions, allowing you to await favorable offers. Another avenue is selling directly to an investor.  

To gain a deeper insight into the process of selling commercial real estate by owners, here are the essential steps for achieving success: 

1. List Your Commercial Real Estate Property for Sale  

The first step is to create a detailed listing. Some sellers may choose a broad approach to attract more in-person views, focusing on essential details such as zoning regulations, square footage, pricing, and quality photographs. This can significantly enhance buyer interest. Providing these critical elements ensures potential buyers have all they need to initiate contact, even when comparable properties are nearby. 

2. Market Your Property Effectively 

Effective marketing techniques are crucial for successfully selling a commercial property. Simply listing it and waiting won’t ensure a swift sale. To attract the right buyers promptly, it is essential to develop a proactive marketing strategy. 

This includes strategies like constructing a prominent sign, designing eye-catching promotional flyers, leveraging business networks, and strategically listing the property online. These efforts collectively form a robust plan to maximize visibility and interest in your property, increasing the likelihood of a successful sale. 

3. Collaborate With a Commercial Real Estate Agent 

Commercial real estate brokerages provide significant value by streamlining processes and optimizing outcomes. The property agents relieve busy investors and business owners of the time-consuming tasks associated with managing listings. This includes scheduling visits, negotiating contracts, and handling paperwork, allowing clients to focus on more critical aspects of their business. 

Partnering with a professional agent not only saves time, but also taps into their extensive knowledge and expertise. This can lead to maximizing the value of your property and leveraging their extensive network to find potential buyers. 

Overall, while working with a commercial real estate agent offers numerous benefits, it is essential to find one whose commitment aligns with your expectations and goals. 

4. Ensuring a Positive ROI for Your Property  

Achieving a positive return on investment (ROI) is paramount in every commercial real estate transaction. Utilizing property agents enhances your chances of maximizing sale proceeds through expert pricing, effective marketing, skilled negotiation, and seamless closing. While brokers earn commissions for their services, the value they bring far outweighs the cost, ensuring your sale achieves its highest potential value. 

5. Identify Off-Market Buyers 

To maximize your property’s potential sale, leverage your network to discreetly connect with potential buyers. Begin by informing your contacts about your intention to sell, targeting individuals interested in real estate investment, or seeking to expand their property portfolios. This proactive approach can effectively identify interested parties and facilitate off-market transactions, ensuring you reach motivated buyers who align with your property’s value proposition. 

6. Search for Recent Sellers & Buyers  

Utilize search tools to understand the transactional details from recent sales. These documents contain comprehensive information about both the seller and the buyer. This valuable information enables you to identify potential sellers interested in new investment opportunities and buyers looking to expand their property portfolios. 

7. Negotiate With Potential Buyers  

Gathering comprehensive information about the location is crucial for maximizing negotiation leverage with potential buyers. Utilize case studies, comparisons, and graphical data to substantiate the asking price, appealing particularly to business and investment-oriented buyers. 

8. Analyze Commercial Real Estate Comparable in Your Area 

In commercial real estate, comps are categorized into two main types: leasing and sales. When selling commercial properties, it is crucial to focus on leasing comps separately. Ensuring you have proper access to your company’s systems is key for effectively viewing these listings. Role-based access control clarifies why agents often rely on their brokers to access this information, highlighting the importance of having the right permissions to gather relevant data independently.  

9. Finalizing the Sale of Your Commercial Property 

Successfully selling a property involves preparing all necessary documents to ensure a lawful and conclusive transaction. This process includes resolving any title concerns, settling outstanding loans with your lender, and transferring full ownership to the new owner of the commercial property. Additionally, it requires arranging a designated account to receive the proceeds from the sale upon its successful conclusion. 

Sell Your Commercial Real Estate with BFPM 

When preparing to sell your commercial real estate assets, it is essential to approach the process thoughtfully and strategically. Ensuring your property is well-maintained is a baseline requirement, alongside understanding how market dynamics will influence pricing and your overall return on investment. Navigating this complex process can be challenging, which is why engaging a capable commercial real estate brokerage is highly advisable. Their expertise can help streamline the complexities of sales. 

Once your property is sold, it’s crucial to plan your next steps wisely. Whether reinvesting in another property or leveraging your proceeds for maximum returns, strategic planning is key. 

No matter your financing needs, our team is ready to assist. Reach out to BFPMInc. for any further queries.