Residential properties are the most common type of real estate to be sold in the market due to homes being a general necessity. However, commercial real estate can be lucrative when given the right conditions and selling tactics.
Whether you are an experienced real estate professional or a beginner in the real estate field, selling commercial real estate may be more challenging than you might think. To be prepared for the challenges you might face in this endeavor, here are tips to effectively sell commercial real estate.
#1 Update your environmental reports
An environmental report for real estate is a report that shows whether the property is tested for any dangerous environmental contamination. It requires an investigation of former tenants to determine suspicion of contaminant use and an analysis of the property’s surroundings (i.e. soil, water, and air) to confirm any presence of contaminants and pollution.
Any buyer would want to buy a property in good condition and with a positive background. To aid in selling your commercial property faster, have an updated environmental report available. This helps buyers determine their choice more clearly given the condition of the property.
#2 Create a service history list
Put all history records of utilities and repairs done in the commercial property in a comprehensive list. This should include the plumbing, electrical, elevators, and HVAC amongst other things. Keep past issues documented as well for future reference. This list will help buyers understand the property that they will be taking on. Buyers that are ready to purchase the property will be able to make a cost estimate of how much they will spend on maintenance in the near future.
#3 Prepare a cost-benefit analysis
In commercial real estate, it is important for the buyer to be able to calculate the potential profits and losses of a property. Organize your profit and loss statements and go the extra mile by creating a cost-benefit analysis for purchasing your commercial property. Make it easy to also identify other sources of revenue such as cell towers, solar arrays, and paid signages. All of these will help demonstrate to the buyer the cost of the property’s annual operation as well as the profit margins to gain.
#4 Market your property
You must know how to market your commercial property before you can even sell. The key is to reinforce the benefits and the positive aspects of the property. Having a marketing plan may be essential to help you reach your target audience and to position yourself at the top of the market.
Television and radio are top of mind when it comes to marketing however there are other ways to market your property that are more affordable and efficient. You can take advantage of social media to widen your reach. Having a website or partnering with a real estate service provider like PropertyAccess is another cost-effective way to tap potential buyers and market your commercial property.
Moreover, you can go back to the roots of real estate marketing which is in-person marketing. Having a lot of connections in the community can help sell your property faster. Banks, lawyers, local investors, and business owners are all great contacts to have on your list. If your network is small, you can always build it up by attending networking events and having yourself be seen in the community.