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How to Sell Commercial Real Estate – 10 Proven Steps

How to Sell Commercial Real Estate – 10 Proven Steps

Have you ever felt the rush of closing a deal on a commercial property? If you’re nodding along, you know that learning how to sell commercial real estate isn’t just about putting up a ‘For Sale‘ sign.

It’s about the strategy and expertise it takes to attract the right buyers and seal the deal.

Many realtors think that selling fast means cutting the price, but I’ve found that you can move quickly and still get your asking price—or better.

In this guide, I’ll walk you through 10 proven steps that you can use to transform your commercial real estate sales from mere transactions to profitable ventures. From the prep work to the final negotiations, these steps are crafted to help you navigate the complexities of the market and really pump up your property’s value.

So, let’s dive into these essential strategies together.

What Is Commercial Real Estate?

When you hear the term “commercial real estate,” it refers to properties used solely for business purposes. These properties are leased to tenants to conduct various types of businesses, providing a steady income to the property owner.

Different Types Of Commercial Real Estate

Let’s explore the different types of commercial real estate you might consider investing in or selling.

  • Office Spaces: These are commercial properties primarily used for professional and administrative purposes. They include single-tenant and multi-tenant office buildings, business parks, and coworking spaces.
  • Retail and Malls: Retail properties are designed for businesses to sell goods and services directly to consumers. This category includes shopping malls, strip malls, standalone stores, and storefronts in mixed-use developments.
  • Restaurants and Eateries: Properties designated for dining establishments. It includes fast-food outlets, cafes, fine-dining restaurants, and food courts within malls or entertainment complexes.
  • Industrial: Industrial properties are used for manufacturing, warehousing, distribution, and logistics. They include warehouses, distribution centers, manufacturing plants, industrial parks, and flex spaces.
  • Multifamily: These properties consist of residential buildings with multiple units, such as apartment complexes, condominiums, townhouses, and mixed-use developments with residential components.
  • Special Purpose: Special purpose properties are uniquely designed for specific uses. This category includes gas stations, car washes, self-storage facilities, hotels, motels, recreational facilities, healthcare facilities, and educational institutions.

Each type of commercial real estate offers distinct investment opportunities and considerations, catering to different market demands and investor preferences.

Top 10 Steps to Successfully Sell Commercial Real Estate

Selling commercial real estate involves more than just putting a property on the market. It requires a structured approach to ensure you not only attract the right buyers but also secure the best possible deal.

Here’s a step-by-step guide that lays out each stage clearly to help you manage the sale from beginning to end.

1. Preparation and Research:

The first step in selling your commercial property is thorough preparation and research. Begin by investigating the current market conditions in your area.

For instance, if you’re selling an office space, look at recent sales of similar properties in the neighborhood. Note their selling prices, time on the market, and any features that might have influenced buyers’ decisions.

This data helps you understand what buyers might expect and what they’re willing to invest.

Also, assess the unique selling points of your property—are there newly upgraded systems or is it located in a booming part of town? These are key details that can attract buyers.

2. Set Clear Objectives:

After thoroughly preparing & researching, and before you put your property on the market, it’s crucial to define your objectives. What are you aiming to achieve with this sale? Consider whether your priority is to sell quickly or to maximize the selling price.

For example, if your goal is a quick sale, you might price the property slightly below market value to attract more interest.

On the other hand, if maximizing return is your objective, you might invest in making improvements to the property to enhance its appeal and justify a higher asking price.

Setting these goals early on helps steer your strategy for marketing the property and negotiating with potential buyers.

3. Evaluate Property Value:

Once you set clear objectives, you must accurately evaluate the value of your property when undertaking how to sell commercial real estate. This step is particularly important if you don’t know how long it takes to sell a commercial property. It also ensures you set a competitive price that attracts potential buyers.

Consider various factors such as location, size, condition, and market trends to determine the fair market value. If your goal is to sell for cash or to sell your commercial property fast, pricing it appropriately is essential.

Additionally, factor in the costs associated with selling a commercial property and the typical timeline for completing a sale. By conducting a complete evaluation of your property’s value, you’ll position yourself for a successful transaction that meets your objectives and maximizes your returns.

4. Enhance Curb Appeal and Presentation:

First impressions are critical in real estate; they set the stage for potential buyer interest and can influence the selling price. To enhance your property’s curb appeal and presentation, consider the following steps:

  • Update Exterior Paint: A fresh coat of paint can revitalize the look of your property, making it more attractive to prospective buyers.
  • Improve Landscaping: Well-maintained landscaping enhances the visual appeal of your property. Simple changes like trimming overgrown bushes, adding new mulch, and planting flowers can make a significant difference.
  • Make Minor Repairs: Address any noticeable defects that might discourage buyers. This could include fixing broken windows, replacing outdated fixtures, or patching cracks in the walkway.
  • Clean and Organize Interiors: Ensure the inside of your property is clean, decluttered, and well-organized. This helps create a welcoming environment in which buyers can envision themselves.
  • Stage the Interiors: Staging involves arranging furniture and decor to showcase the potential of the space. It helps buyers visualize their business in the setting, potentially making the property more appealing and justifying a higher price.

Implementing these improvements can greatly enhance your property’s marketability, attracting more buyers and possibly increasing the final sale price.

5. Market the Property:

The next vital step is to market the property. This ensures that the improved features are effectively communicated to potential buyers, maximizing the property’s visibility and attractiveness in the market.

Utilize various channels such as online listings, social media platforms, and networking with other real estate professionals to showcase your property to a wide audience.

Highlight its key features and benefits to capture the attention of interested buyers. While marketing efforts may incur some costs, they are essential investments that can help you achieve a successful sale.

By implementing a comprehensive marketing strategy, you’ll increase visibility and generate more interest. Ultimately it maximizes your chances of selling your commercial property quickly and profitably.

6. Qualify Potential Buyers:

Once you’ve effectively marketed your property, the next essential step is qualifying potential buyers. This ensures that your marketing efforts attract genuine interest, guiding you towards serious inquiries and ultimately facilitating a successful sale.

Whether you’re selling commercial property by the owner or aiming for a quick sale for cash, identifying serious and financially capable buyers is essential. Require proof of funds or pre-approval letters from lenders to ensure that interested parties are qualified to purchase your property.

This process helps streamline the selling process and minimizes the risk of deals falling through due to financing issues. While qualifying buyers may require some effort, it is a necessary step to expedite the sale and achieve your desired outcome.

By focusing on qualified buyers, you can increase the probability of a successful transaction and reduce the time it takes after knowing the impact of how to sell commercial real estate properly.

7. Negotiate Offers:

After qualifying potential buyers, the next crucial step in the process of selling commercial real estate is negotiating offers. Whether you’re selling commercial property or aiming for a quick cash sale, effective negotiation with qualified buyers can significantly impact the outcome of the transaction.

But remember, negotiating offers is more than just agreeing on a price. Here are key points to consider:

  • Analyze Offer Details: Examine all aspects of the offer, including price, payment terms, contingencies, and closing timeline.
  • Strategic Counteroffers: If the initial offer isn’t acceptable, prepare a counteroffer that better meets your terms while still being attractive to the buyer.
  • Consult with Experts: Work with your real estate agent or lawyer to craft responses that protect your interests and move the sale forward.

8. Due Diligence Process:

After accepting an offer, the buyer will likely conduct a due diligence investigation.

During the due diligence process, the buyer inspects and verifies various aspects of the property:

  • Property Inspections: Allow access for the buyer to conduct thorough physical inspections of the property.
  • Document Verification: Provide all necessary documentation, such as leases, service contracts, and property management records.
  • Address Issues: Responsively address any concerns that arise to prevent delays or deal breakage.

By being transparent and responsive throughout the due diligence process, you can maximize the sale and minimize delays, ultimately leading to a successful transaction.

9. Finalize Closing Details:

As the due diligence phase concludes in the semi-final stages of how to sell commercial real estate, and all conditions are met, move to finalize the closing details.

Finalizing the closing usually involves below steps:

  • Set a Closing Date: Agree on a date that suits both parties, considering any final checks or adjustments needed.
  • Finalize Paperwork: Ensure all contractual documents are accurate and reflect the agreed terms.
  • Prepare for Transfer: Coordinate with legal professionals to prepare the deed and other necessary documents for property transfer.

10. Close the Deal:

The final step is the actual closing, where the sale is officially completed.

Closing the deal is the culmination of the sales process:

  • Sign Legal Documents: Execute all closing documents, including the deed and settlement statements.
  • Transfer Funds: Ensure that funds are transferred securely, typically via a cashier’s check or wire transfer.
  • Record the Sale: File the deed and any other required documents with the appropriate local government to officially record the sale.

Once everything is signed and exchanged, congratulations are in order—you’ve successfully sold your commercial real estate!

Following these steps in order ensures a thorough and professional approach to selling your commercial property, from the moment you list it to the moment you close the deal.

How to sell commercial property fast with WPVR

Now, I will introduce a tool named WPVR that can significantly streamline and enhance the process of selling your commercial property quickly. Here’s how this powerful tool can be specifically tailored to meet the demands of the commercial real estate market:

How to Sell Commercial Real Estate

i. Craft Captivating Virtual Tours:

WPVR allows you to create dynamic, 360-degree virtual tours of your commercial property. These tours provide an in-depth look at the property, covering all angles and giving potential buyers a realistic sense of space and layout without having to visit in person. This is especially useful for how to sell commercial property fast, particularly for large spaces like warehouses, office buildings, or retail centers where understanding the layout is crucial.

ii. Share Widely to Engage:

Maximize exposure by sharing your virtual tours on various platforms. WPVR supports easy integration with websites, social media, and email campaigns, ensuring that your property reaches a broad audience. Increased visibility in the market can significantly speed up the process, ideal for selling commercial property by the owner and reducing the costs of selling a commercial property.

iii. Explore Anywhere, Anytime:

Virtual tours created with WPVR can be viewed from any device, offering convenience and accessibility. This feature is particularly valuable for commercial real estate, catering to busy professionals and investors who might be interested in how to sell commercial real estate for cash and may not have time for multiple in-person viewings.

iv. Spotlight What Matters:

Highlight the key features of your property using hotspots and interactive elements within WPVR. Draw attention to important attributes like high-traffic locations, unique architectural designs, and modern facilities. These details are crucial for making your property stand out to potential investors and business owners looking for specific features, thus selling commercial property fast.

v. Capture Interest with Integrated Lead Forms:

Incorporate lead capture forms directly into your virtual tours. This feature allows you to collect contact information from interested parties effortlessly, enabling immediate follow-up. Quick and efficient communication with potential buyers can lead to faster negotiations and closings, which is essential for those wondering how long does it take to sell a commercial property.

vi. Build Confidence:

Providing a comprehensive virtual view builds trust and confidence among prospective buyers. WPVR’s realistic tours help buyers understand exactly what they are purchasing, reducing doubts and questions that can delay decision-making. This is particularly beneficial for those needing clarity on the costs of selling a commercial property.

vi. Make Informed Choices, Fast:

The detailed presentations within WPVR tours mean potential buyers receive all the necessary information upfront. This clarity facilitates quicker, more informed decision-making, accelerating the sales cycle—ideal for how to sell commercial property fast.

vii. Convenient Access, Anytime:

Ensure your virtual tours are accessible around the clock. This non-stop availability allows potential buyers to explore the property at their convenience, catering to different time zones and schedules. This accessibility is essential for attracting international or interstate investors, often a key demographic in how to sell commercial real estate for cash.

Conclusion:

In conclusion, successfully selling commercial real estate requires a strategic approach that optimizes visibility and buyer engagement.

By following the steps outlined in this blog—from preparing your property and setting clear objectives to engaging with potential buyers and closing the deal—you can enhance your chances of a quick and profitable sale.

Are you ready to streamline your commercial property sales process?

Explore WPVR now to unlock powerful tools that can transform how you sell commercial real estate.

** FAQs **

What are the advantages of selling commercial property by owner?

  • Selling your commercial property by owner allows you to save on commission fees typically paid to real estate agents. You also have full control over the sales process, including pricing, marketing strategies, and negotiations.

How to Sell Commercial Real Estate for Cash?

  • Yes, selling commercial real estate for cash is quite common, especially for motivated sellers looking for a quick transaction. Cash buyers often offer faster closings and greater certainty, as they don’t rely on financing approvals.

What Are The Typical Costs of Selling a Commercial Property?

  • Typical costs of selling a commercial property include closing costs, attorney fees, property taxes, and any necessary repairs or renovations to prepare the property for sale.

How to Sell Commercial Property Fast?

  • If you don’t know how to sell commercial property fast, consider pricing it competitively based on market trends. It enhances its curb appeal and utilizes digital marketing techniques such as virtual tours, WPVR, and targeted advertising.

How Long Does It Take to Sell a Commercial Property?

  • The timeframe for selling a commercial property can vary depending on factors such as location, market conditions, property type, and pricing. While some properties may sell within a few months. Others could take several months or even years to find the right buyer.

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Written by

Rafsan Jany - Akhil

Rafsan Jany - Akhil

He is a content writer at RexTheme with an interest for WordPress and WooCommerce. He loves to write informative content according to his skills and experiences. Feel free to comment on his blogs, he will try his best to give you the best solutions.

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