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  • Writer's pictureMichael Reyes

How to Sell Commercial Real Estate

Selling commercial real estate can be a rewarding venture, but it requires a strategic approach to succeed. Whether you're a seasoned professional or a newcomer to the industry, understanding the key steps involved is crucial. So, how to sell commercial real estate? We will look at the steps of selling commercial real estate below. 

 

But first things first, 

 

What is Commercial Real Estate?

Commercial real estate is any property designed for the purpose of business activities instead of using it for residential purposes. For instance – warehouses, hotels, and office buildings. You can sell or lease commercial properties to investors seeking space for operations or investment purposes.


What is Commercial Real Estate?

Different Types of Commercial Real Estate Properties

There are different types of commercial real estate that serve various business purposes and investment opportunities. Here are some of them – 


Office buildings 

Office buildings are used for professional work and administrative purposes, like small office suites in suburban areas or large multi-story buildings in urban settings. 


Industrial properties 

Industrial properties are the ones that are used for distribution, manufacturing, production, storage, and logistics purposes. These could be distribution centers, factories, and warehouses where you can produce, store, and distribute goods. 


Multifamily 

Sometimes multi-family homes like apartment buildings, condominiums and townhouses can also come under commercial real estate because they hold the potential for income generation. 


Special purpose 

Special purpose properties are meant to serve specific business needs and may include properties like churches, car washes, hospitals, and schools. 


Types of Commercial Real Estate Properties

Steps For Selling Commercial Real Estate Fast

Selling commercial real estate requires you to follow certain steps, and those are – 

 

List your commercial real estate property 

The first step in selling commercial real estate is creating a listing. Put your website on a listing website, including details like price, square footage, zoning, and some photographs of your property. 


Without it, some potential buyers won't even bother to reach out to you for your property unless it is the only option in that area. Choose websites that generate a lot of traffic so that your property is visible to a wider audience.

 

Market your property 

You can use several marketing techniques to sell commercial real estate. Listing the property and hoping for the best – it doesn't work like that. You need to create a proactive marketing plan so that potential buyers can come across your property. 


Create a large sign, make promotional flyers, and reach out to your business networks. All this forms a part of an effective marketing strategy. 

 

Keep all your paperwork ready 

Before listing your commercial real estate for sale, get your paperwork ready. If you don't do that, it is going to deter your potential buyers. Because they feel that they might face unknown issues sometime in the future. Keep the documents like permits, ownership papers, and other certifications related to the property ready with you. 


If there are tenants in your commercial property, organize your rent roll along with other profit and loss statements from the last two years. Providing the buyer with the rent roll means they can have an idea about which tenants are going to leave soon and which ones will stay in the property for the next few years. 

 

Work with a commercial real estate broker

Can a real estate agent sell a commercial property? Of course, they can. They add value to selling the commercial property and hence save your time and money. As a business owner or investor, you generally don't have the time to manage your own listings. You have to deal with negotiating the contracts and looking after all the paperwork. And it all gets time-consuming if you decide to do it on your own.

 

List Your commercial Property

Working with a  professional and commercial real estate broker allows you to focus on more important things. Their expertise can assist you in developing great business connections and can get you the worth of your property. 

 

Leverage social media 

If you know how to use the social media correctly, you cannot deny that it is a free way to let your property out infront of people. Leverage social media platforms to post property picture. Don't forget to include helpful information about your asset. 


Also, keep a check on how many people are viewing, liking and sharing your post. Find out the similar pages that people use to advertise their property and make a note of where you can advertise the same. 

 

Negotiate with potential buyers 

Having all the information about the location where you are selling to lets you to negotiate effectively with potential buyers. 


Use competitors, case studies, and other graphs to justify the asking price you are quoting to your clients. It tend to appeal more to the investment buyer. 

 

Review the competitors in your area 

Commercial real estate competitors are of 2 types. The first one falls under the category of commercial leasing, and the second one in the sales of commercial properties. 


You will need to make a list of leasing competitors if you have made up your mind to sell commercial real estate. You can get in touch with the real estate agent for the same to help you with knowing the competitors in your area. 

 

Finalize the sale 

Finalizing the sale includes many steps. Keep the right documents ready with you to ensure the legality of the sale. 


Clear any title issues, pay off your lender, and fully transfer over ownership to the new commercial property holder. 

 

Conclusion

Think like a buyer when you are considering selling commercial real estate. Provide as much information as you can and market your property aggressively. If you need assistance in terms of how to sell commercial real estate, it is always recommended to get in touch with an experienced real estate broker. 

 

FAQs

 

Can a real estate agent sell commercial property?

Yes, a real estate agent can sell commercial property, but they may need specialized training and experience in commercial real estate transactions. While residential and commercial real estate have similarities, commercial properties often involve more complex regulations and financial aspects. An agent should be familiar with zoning laws, leasing agreements, and market trends to effectively assist clients.

 

Is it profitable to buy commercial property?

Buying commercial property can be profitable if approached wisely. Rental income from commercial tenants can provide a steady revenue stream, and the property's value may appreciate over time. However, success depends on factors such as location, tenant stability, and economic conditions. Proper research and due diligence are essential to maximize profitability and minimize risks.

 

What is a commercial sales agent?

A commercial sales agent, also known as a commercial real estate agent, specializes in buying, selling, and leasing commercial properties such as office buildings, retail spaces, and industrial warehouses. They provide market insights, property valuations, and negotiation expertise to help clients achieve their goals. A commercial sales agent must understand industry trends, property laws, and financial aspects unique to commercial real estate.


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