November 11, 2021
Selling a commercial building isn’t quite like selling residential real estate. It’s a unique process that requires a bit more groundwork. If you’re about to list your commercial property for sale or learn about the process itself, you’re in the right place to learn.
Commercial buildings can be a solid investment. Yet, when it comes to selling, it can feel like a maze if you’re not prepared. With this guide, you’ll discover how to sell your commercial property quickly and efficiently. We’ll help you sidestep common pitfalls and ensure you get the best price possible.
Is it really that complex? Why’s it so different from selling residential property? You approach selling commercial property with a different mindset because the factors at play are not the same.
The first thing to consider is the size of the market. While the residential real estate market in the US is valued at over $32 trillion, the commercial market is roughly half of that. It might seem like a setback, but it isn’t. Here’s why – the commercial real estate has a vast field of opportunities that the residential market doesn’t offer. It comprises seven basic sectors and numerous sub-sectors, each with different turnover rates and demands.
This diversity reflects in the selling process. Here, negotiating skills act as the key to the ultimate sale price of your property. So now, you aren’t just selling an office space or a retail store, but you’re engaging potential investors in a meaningful negotiation.
Remember you’re not limited to using realtors. It’s completely okay if you’re looking at selling commercial real estate off-market. Realtors can take a chunk of time to list your property on various marketplaces. And time, as in any business, is money.
This signifies one thing – your approach to selling commercial property must include competent negotiation skills, a proactive approach to find potential buyers or firms, and if needed, managing the property affairs all by yourself. All the while, keeping in mind your bottom-line and the important aspects of selling your commercial property.
In the upcoming section, we will investigate the step-by-step guide to ensure a successful commercial real estate sale process.
You’ve got to adopt a specialized approach if you want to make the most out of your commercial real estate asset. Let’s move onto the crucial steps you should be taking to adequately prepare your commercial building for sale.
The first step in any successful commercial property sale usually involves a thorough property assessment. Ignorance isn’t bliss in this scenario – you should be aware of the current state of your property inside and out. After all, you won’t want any surprises to sneak up on you during a buyer’s inspection, right?
To ensure a comprehensive property assessment, consider working with a commercial real estate appraisal firm. They specialize in providing an accurate estimation of your property’s market value. These professionals take multiple factors into account, from location to physical condition, amenities to local market trends.
You also want to keep in mind that age and type of use play a significant role in determining its value.
An appraised value, but, is only an estimation – a snapshot of a specific point of time. Remember, market dynamics can either elevate or lower this value significantly.
Buyers of commercial property, like all buyers, love a well-maintained and appealing space, so fixing any glaring issues or defects the property might have should be a priority.
Is there a barn or building on your property that’s seen better days? It’s high time to spruce it up. Clean up both the interior and exterior and remove any materials lingering around that might decrease your property’s appeal such as trash or unused tools.
Did you know that even minor items such as faulty lights or nonfunctional water troughs can impact a potential buyer’s perception negatively? Make sure any electrical items are in working condition.
Apart from repairs, upgrades to the property can boost its value and desirability. You want to strike a balance between the cost of improvements and the potential return on investment.
Consider engaging professional cleaning crews, staging companies, furniture rental shops, and property management firms. They can help transform your commercial property and make it all the more appealing for a profitable sale.
In this journey of commercial real estate sale, preparation is key. Keep forging ahead, skipping no step and leaving no stone unturned to ensure a successful sale.
You’ve done your assignments, conducted property assessment, and made the necessary repairs to your commercial building. Now, it’s time to let the market know it’s up for grabs. Proper marketing strategies give your property the visibility it needs to attract the right buyers. Let’s jump into this a bit more.
First things first – the listing. This is your opportunity to make your commercial property stand out from the competition. Here’s a step-by-step guide to crafting an effective listing:
After creating an appealing listing, your next step is spreading the news. Online platforms play a significant role in property management nowadays, with a vast majority of buyers starting their property search online.
Remember, the key is to cast your net wide. The better visibility your property has, the higher your chances of attracting potential buyers. And while marketing your commercial property might seem daunting, remember you’re not alone. Commercial real estate brokers and other professionals can provide invaluable assistance throughout the process.
Entering the world of commercial real estate transactions, especially as a seller, can indeed seem daunting. But once you’ve masterfully prepared and listed your property, you’re onto the next crucial stage: Negotiating the Sale. This phase is where the rubber meets the road, and fortunately, help can be closer than you think.
It’s virtually a no-brainer that having a real estate attorney experienced in commercial real estate property can be an asset. They’ll be instrumental in helping you navigate negotiations. Keep in mind, a negotiated agreement isn’t the finish line. There’s still running a title search, allowing the buyer to conduct due diligence, closing, and transferring the property’s title in store.
Given these complexities, you can chalk it up as another reason to employ a Commercial Real Estate Broker. They not only connect sellers and buyers but will also handle sale price negotiations and manage paperwork. It’s reminiscent of a personal guide for the intricate path of commercial property selling.
The arena of property management can indeed become a labyrinth of tasks when you’re dealing with commercial properties. From fielding inquiries, coordinating viewings, negotiating terms to managing paperwork – it can all easily become overwhelming. That’s when you’ll truly appreciate having a commercial real estate broker in your corner.
A key consideration during your negotiation should inevitably revolve around the current market conditions. It becomes imperative to price your property realistically, keeping in mind the existing commercial real estate trends and dynamics. An appraisal from a local real estate professional can provide a gauge for potential buyers on what they should expect the investment worth of your building is.
For a smoother journey through selling your commercial building, having professionals by your side cannot be underestimated. Their expertise can make all the difference in making this strenuous process more navigable and potentially more profitable.
Every detail counts, especially when you’re in the thick of negotiations. Let’s take a closer look at what this phase entails and how you can seal the deal smoothly.
When selling commercial real estate, having a real estate attorney at your side can make substantial differences. They’ll not only guide you through grueling negotiations but also handle the crucial legal aspects, such as ordering your title promptly. Keep in mind, your title report may take between 7-10 days to arrive. So, kicking off that process immediately is highly recommended. But remember, collaboration is key. Timing is critical, and not all attorneys respond quickly. Make sure the one you work with treats your sale as a high priority.
Your next ally in this intricate journey is a Commercial Real Estate Broker. Why do you need one? They have an in-depth understanding of market conditions, which play a huge role in pricing your property realistically. Also, they manage all the paperwork and make the labyrinthine selling process simpler, saving your time and effort.
Let me share a little story. Imagine selling your car, you believe it’s worth between $800-$1000, and your agent agrees. But, after weeks of no movement, frustration sets in. You lower your asking price to $600-$800, and magically, the car’s sold for $700. You’re delighted, right? Until you discover the buyer – a colleague at work – had actually paid $1350 for the car. Yes, it’s a car sale, but the bitter taste of such an experience crosses all boundaries.
Legally battling someone to gain a couple of hundreds might not be worth it but when we translate that story to commercial Real Estate, the scale and, so, the potential loss are much larger!
This story highlights a double-edged fact about many real estate agents. Some may seek to inflate their earnings by dark methods, which may result in losses for you. And that’s precisely why you need to carefully choose your allies in this journey.
Exploring the world of commercial real estate transactions can be both daunting and filled with potential pitfalls. But, it’s not just about spotting the dishonest agents – efficiency matters too.
Take the process of title ordering, for example. It’s a key part of any commercial property transaction and can take between 7-10 days to complete. Now, imagine a delayed response from your real estate attorney in this equation – each passing day could be a potential buyer lost. That’s why timely responses are essential, and working with top commercial real estate companies who prioritize your property sale is crucial.
So what can you do to avoid the pitfalls?
Remember, diligent property management gives you an edge in the game of selling commercial property.
Education is another tool in your arsenal. Specific states have various prerequisites for real estate courses – from 75 hours in New York to 180 hours in Texas. Gaining this understanding solidifies your knowledge base and makes you a more informed seller.
But, knowledge isn’t just about accumulation – it’s about application. Equip yourself with the necessary expertise to maneuver through the competitive arena that is commercial property sales.
You’re well on your way to avoiding unnecessary setbacks while selling commercial property. And while challenges are inevitable, having these precautions will make them more manageable.
Efficiency and ethical practices hold the most value in commercial real estate transactions. These aspects include timely title ordering, working with credible real estate firms and responsive attorneys, and investing in real estate education for better decision-making.
A real estate attorney’s quick response during essential stages such as title ordering can help keep potential buyers involved as delays can often lead to loss of interest or trust in a deal.
Building knowledge through real estate education enables sellers to understand the processes better and equip them with the necessary skills to effectively navigate the competitive environment of commercial property sales.
Pitfalls can be avoided by working with reputable commercial real estate companies, getting title reports promptly, selecting responsive lawyers, and choosing trusted brokers. These practices ensure a smooth transaction process.
Working with reputable commercial real estate companies ensures competent handling of transactions and adherence to ethical practices. This reduces the risks of legal disputes and unethical practices that might harm your investment.
October 28, 2025
The past few years have reshaped the way businesses think about office space. Remote and hybrid work, changing workforce expectations, and fluctuating economic conditions have all prompted business owners to reevaluate their office leases. Whether your company has grown, downsized, or simply evolved, renegotiating your commercial lease can lead to better terms, lower costs, and […]
October 15, 2025
Finding the right commercial space is about more than location—it’s about securing the best possible terms for your business. That’s where tenant representation comes in. Whether you’re a growing startup, relocating an established company, or renegotiating an existing lease, working with a dedicated tenant representative gives you the advantage in an increasingly competitive market. What […]
October 12, 2025
Setting up your first office is an exciting milestone—but it also comes with big decisions that can impact your company’s productivity, budget, and future growth. Whether you’re a startup moving out of a home office or an established business seeking a new location, thoughtful office space planning is essential for long-term success. Below, we’ve combined […]
We are a commercial real estate firm specializing in buying, selling, lease negotiations, and relocations.
© 2019 Rakow Commercial Realty Group | 10 New King Street - Suite 212 White Plains, NY 10604 Phone: (914) 422-0100 | 6 Landmark Square - 4th Floor Stamford, CT 06901 Phone: 203-359-5703 | 50 Tice Blvd Suite# 340 - Woodcliff Lake, NJ 07677 Phone: 201-416-6112
Digital Solutions by Zero Gravity Marketing
Thanks for choosing RakowGroup! We look forward to speaking to you about all your real estate needs.