When Looking to Sell Your Commercial Real Estate.
What do I need to consider?
Are you at that next step with your commercial property where you want to sell for any number of reasons? Now you are asking yourself, what is my next step?
Selling Commercial Real Estate is much different than selling residential real estate in that typically there are many things to consider including zoning, is the property an investment or user sale, is value in the building and land or land only?
Bechard Group’s team will help walk you through theses questions and many others. For instance, we will not only look at what the current zoning of your commercial real estate but also what are future zoning requirements that might be impacted by a change of ownership – this can also be even more critical since more areas now are impacted by not only State but County and local zoning ordinances. Another question with zoning – is your commercial property impacted by special-use permit?
When looking at whether you are selling the property as investment or user sale the evaluation would look solely at the real property commercial real estate and not specifically at non-fixture contents – or contents that could easily be removed per the Wisconsin Commercial Listing Contract. For instance, if you had a restaurant, the cooler/freezer, grease hood, sinks etc would all typically stay with the property for a user sale evaluation.
If the commercial real estate is being sold as an investment property, income earning commercial real estate, then we must consider along with the commercial improvement’s value also the value of the tenant lease not only today but for future earnings. The earnings are viewed by looking through the lease(s) to see what responsibility a tenant has and what landlord/owner is responsible for.
If the seller is going to stay in that location and is or will become a tenant for the new owner/investor, is the seller paying market rent based on the use of the commercial real estate? If not, this will dramatically change the sales price negatively for the seller and might not make the property appealing to a buyer.
One of the last items to consider are the current market conditions for the commercial real estate. If you have an office building that is vacant and there is surplus of commercial office real estate on the market, this could impact the selling price and likewise if you have an industrial building with leveler-loading dock(s) this is typically more marketable than an industrial building without loading dock(s) in almost any market condition.
Now we have the question of location – where is the commercial real estate located to the surrounding area? How easy is access to good infrastructure? If your property is close to an interstate on/off ramp then there is more value verses where you may have ‘visibility’ of the interstate but access is over 10 miles to get there – is visibility important for a buyer – it might be depending on business while others, visibility does not matter; however, access to that infrastructure will matter for transportation costs as well as employees ease of access.
When you are ready for the next commercial real estate move and looking to sell, Bechard Group is ready to work with you. We are dedicated exclusively to commercial real estate services. Bechard Group, is comprised of brokers and agents along with professional support staff who possess a genuine commitment and unsurpassed knowledge of the industry. We are committed to achieving superior results for our clients and customers through specialized expertise, with access to a full complement of services, and sophisticated market knowledge and analysis. Our Market is Wisconsin, and your Solution is our Market.
Bechard Group Team