We’re on the hunt

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We field a number of questions regarding the type of sale or lease product that moves the quickest in our market. It’s hard to generalize because every commercial real estate property is different however there are certainly those that stand out from the rest.

We are always searching for new product to bring to our clients, so pay attention to our wish list:

Income producing

A full building with long term tenancies will always be in demand. Whether office, retail or industrial, investors are seeking income producing property with low risk.

If you’re selling, this means ensuring your leases are in order. There are a multitude of other housekeeping items we will advise sellers on, but the trump card is the tenancies.

Month to month or shorter terms are not attractive to buyers. Locking down early renewals can be helpful in best positioning your property for the highest market value.

If you’re buying, we will conduct a full review of the leases to ensure you understand what you’re purchasing. Landmines can include termination or renewal options that may hinder improving value down the road for you.

Lowest risk

Most agents would agree that multifamily buildings present the least risk of commercial real estate investments. I say this because even if a unit goes vacant, there are many other tenancies to support the income.

The flip side of this is that these products currently offer the lowest cap rates (returns) to landlords. A building with no major deferred maintenance and a relatively low vacancy rate will sell quickly.

Pricing is important in all commercial real estate sales, but I find this market is especially sensitive. Ultimately the market determines the price, so setting expectations too high can only slow a possible sale.

Tenant friendly

When it comes to creating the most leasable space, a landlord should be cognizant of bringing the most tenant friendly space he/she can to the market. That could be open to a number of interpretations but there are some easy items that apply to all types of lease space.

A clean space shows better. Tenants often can’t see past the items left behind by a previous tenant.

Having an accurate floor plan available with dimensions can also help secure tenant interest. If there is any kind of build out to the space, it is especially important to provide.

Tenants have a multitude of questions when leasing so anticipating those questions ahead of time can expediate the process. Providing as much info about the space will certainly enhance our ability to move it quicker.

Posted by Kelly Macsymic

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