If you are a commercial real estate property owner in the Capital Region of New York State, or anywhere else in the world, who is interested in buying, selling, or leasing commercial property this year, then this article is for you.
And if you are NOT a commercial real estate property owner but you want to learn what it takes to be successful in commercial real estate, then this article is also for you.
And even if you have ZERO interest in commercial real estate and you are happy with that as your status quo…then this article is ESPECIALLY for you.
Because what I’m about to reveal to you over the course of the next few pages is powerful knowledge that most business owners are not privy to, since most business owners are not commercial real estate professionals working fulltime in the real estate industry.
I will share with you the universal truths taught to me from my commercial real estate master teachers. These important lessons offer useful wisdom to help every business owner when they are trying to sell their commercial real estate property with my Cushman & Wakefield / Pyramid Brokerage Company team as your commercial real estate property listing agent.
The sooner you accept these universal truths when it comes to achieving success in commercial real estate for your business, the faster we can step forward into growth by closing your commercial deal with less headaches and a more efficient way of doing business with little to no surprises…only preparation and a will to succeed.
That’s what you get when we lock arms on a commercial real estate challenge. It’s how my team does business and it’s what we will show you right now in this useful special report called…
5 Truths Every Commercial Real Estate Property Owner Must Face When Selling
1. Commercial Real Estate Deals May Be Relatively Quick…or Painfully Slow
A popular myth I hear a lot when working in commercial real estate is how long it takes for a deal to close. Depending on the situation and who you ask, a commercial real estate transaction might take several months or even years.
The factors behind this are plentiful and beyond the scope of this report, but here’s the the main reason I tell my commercial real estate clients.
Depending on the nature of the building and its location, a commercial property may not be exactly what a new owner may be looking for when it comes to purchasing or leasing commercial space and maximizing their commercial realty investment.
Perhaps there’s not enough square footage to fit all their restaurant equipment, or maybe there is not enough parking to handle all their customers, or maybe the demographics of the area do not fit the business’s primary clientele.
Whatever the reason, I advise my commercial real estate clients to understand before signing on with me to represent them as their listing agent for their commercial space that the deal could be quick or it could be slow.
So be prepared to hunker down if need be while we sort out the buyers and find the right one willing to play ball and offer a fair price for your property.
Oh, and please don’t make any rash financial decisions with your business before you have the proper funding to do so.
I’d truly hate to see the unthinkable happen and have your business go out of business before the commercial property sale goes through.
2. The Best Attribute of Your Commercial Property Might Be The Worst Attributes to Potential Buyers
Imagine you’re selling your restaurant space that also has a bar with all the equipment.
As the current owner, you probably have reaped the financial rewards of having the bar rake in hundreds if not thousands of dollars in revenue each month.
However, the possible new owner does not plan on selling alcohol, and thus does not want to offer you a price that is anywhere near your asking price per square foot.
I advise my commercial real estate clients to understand that when they owned the commercial space, they likely received full value from a feature that a new owner has zero need for.
This makes things much easier to explain when lower offers come in from new potential owners of the commercial property.
3. Potential Buyers Might No-Show Appointments To See The Space
I faced this same scenario multiple times in my residential real estate sales days as well as my current commercial real estate career.
That’s why I know firsthand how incredibly frustrating it can be for business owners to get excited at the prospect of finally selling their commercial space so they can move on to their next business goal, take time out of their busy day…only to be met with the deafening silence of a no-show showing.
As a commercial listing agent, I can assure you that I take every step to ensure the potential buyer shows up, including numerous appointment confirmation calls and emails.
But unfortunately, in business and in life, situations can change in an instant and for whatever reason, a potential buyer might flake.
However, the positive side of a no-show is the fact that a new, more qualified, and more excited buyer might now have an opportunity to purchase your commercial space at exactly the terms you are asking for and is ready to get this done YESTERDAY.
4. Everything Is Composed of Energy, Including Thoughts
By remaining in a positive state of mind, I like to remind my commercial real estate clients, you are projecting your intentions to the Universe (or Higher Power of your chosen faith) that you would like to achieve a commercial real estate goal with me representing you as your commercial agent.
And since science has proven that thoughts are composed of energy, and as we all know like energy attracts like energy, then you are setting yourself up for success by having the proper mindset to expect to receive back energy in the form of success in getting exactly what you want out of this commercial real estate transaction.
Can we agree that is a good thing?
5. Your Asking Price Might Not Be What The Market Is Willing To Pay
A benefit of working with a commercial real estate professional from a reputable company with an experienced team to support you is the wealth of commercial real estate information at our disposal to help you price your commercial property to net you the most amount of money in the fastest time to sell.
However, I have seen countless business owners set their commercial property asking price at many thousands of dollars over what the current commercial property buying market is willing to pay.
For example, if you set your price per square foot at $10 but similar commercial properties in the area have sold at $8 or less, then you need to either increase the value of what the new owner may be getting in the deal or simply lower your price and get more reasonable offers.
The choice is yours.
As your commercial agent representative, it’s not my job to tell you how to handle your business.
All I can do is provide you with all the information you need to make a smart commercial real estate decision on your own, and I will take it from there.
You can count on my team and me to do everything we can to help you achieve success in commercial real estate.
James K. Kim
James "Jim" Kim is a commercial real estate agent with Cushman & Wakefield / Pyramid Brokerage Company in the Capital Region of New York, specializing in retail, office, and industrial tenant and landlord representation.