|You’ve decided that now is the time to sell your commercial real estate. Many factors have brought you to this place. We won’t discuss those reasons today. Or, selling is not your thing and you believe it’s best to find a tenant for your vacant building and commit to a long term lease. On the flip side, you are an occupant whose business need has propelled you into the market to find a suitable location to house your business. You may choose to buy or lease a location.|
A funny thing happens when you market your commercial real estate for sale – folks want to tour, questions arise, issues surface – you get offers! Now what? Well, you respond to the buyers and negotiate the transaction, right? Sometimes, not that easy. Occasionally, owners are un-prepared for the inevitable – actually making a deal. Make sure you’ve engaged good tax, legal, and commercial real estate brokerage assistance – before you take your property to market. Know the tax impact to you of the sale and create a strategy for the proceeds. – will you pay the tax or exchange the gain into another building? What contract form will you use to execute the sale? There are some good standard documents such as the AIR Purchase and Sale Agreement, but will this contract provide adequate protection for you as the seller and enough representations and warranties for the buyer? Your commercial real estate broker should provide a complete review of the market, financing scenarios for potential buyers, and a means to vet prospective purchasers and their ability to close. Often the best buyer is not the buyer who offers the most. Finally, you should consider completing some pre sale inspections of the roof and air conditioning and adjust your asking price accordingly. You’re ready. Bring on those buyers!