Commercial Real Estate News / Selling / 6 Ways to Sell Commercial Property Faster

6 Ways to Sell Commercial Property Faster

Published: 03-02-22 Category: Selling

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

The commercial real estate world can feel like it’s slowing down, like grains of sand in a giant hourglass. Or perhaps it only feels that way when it’s time to sell properties from the commercial portfolio book.

Even the most seasoned within the commercial property space will say that sometimes the sale just doesn’t come through. That doesn’t mean no offers ever appear, but that the right offer doesn’t show up.

Unfortunately, sometimes a market cools off and requires a little more effort to go from good to sold, and that’s where it’s time to go back to the drawing back. There are essentially six ways to sell commercial property faster; each tip is designed to be as action-friendly as possible.

#1 – Get Better Data From The Pros

If the refrain of “location, location, location” is used to describe locating the ideal property, then “communication, communication, communication” should be used to describe selling property. Indeed, there are multiple conversations to be had: with the buyer’s agent, the seller’s agent, the title company, appraisers, and more.

Brokers are looking to move a deal along as well, but no one knows where anyone stands without a good conversation.

Property already listed? If so, looking at the time on the market in respect to time on the market for other properties in the area is ideal. Commercial real estate isn’t really about apples-to-apples comparison as much as it is checking the status of the entire local farmer’s market.

Is it a good time to list the property, or would it be better to wait? Sometimes a temporary retreat is necessary to win the war. Expecting the commercial market to always mirror the velocity of the residential real estate market is also a recipe for disaster.

#2 – Examine Open House Performance

Having interested buyers come to the property directly isn’t always an option, but when it’s possible, it’s the best way to sell a commercial property faster. Unfortunately, far too often we have showings without looking at the numbers. This is understandable; everyone is pretty busy these days.

Instead of just assuming that everything went well, stop and recall some key observations from potential buyers:

Did they feel like the property met their needs?
Did the property feel value-rich compared to the price?
Was everything orderly, neat, and property staged?
Did all parties involved with the sale of the property highlight the best features of the space?
Does the property line up with the photos displayed online?

These are just a sampling of the honest questions that have to be answered before just assuming that price is the only factor buyers are looking at.

Remember that every buyer is envisioning how the income property aligns with the goals they have within their own portfolio. It isn’t personal; just business.

#3 – Address Glaring Repairs

Is the price of the property a concern? If the property has been on the market but hasn’t received a lot of interest, it might be time not to look at the price but the property’s structures. What are the most obvious repairs? How much would they cost to perform?

Distressed properties sell all the time, but if the commercial listing in question feels overpriced without having the repairs addressed, buyers are going to feel like they’re not getting the most for their money.

If they have to put in a lot of money to make the place ready for improved occupancy or a new tenant, they may ask for additional concessions. That’s assuming that a price mismatch issue doesn’t cause them to lose interest completely.

#4 – Invest in Galaxy-Level Photography

Good photography in the commercial space is often overlooked in favor of the numbers, but the reality is that both aspects mean a lot to buyers. When it comes to good photography, there are a few points to consider:

Are all of the fixtures visibly presented in every photo?
Do the spaces within the property look easily accessible?
Is the parking lot represented within the photography?
What is the lighting like on the current set of photos?

While these CRE photography tips feel like common sense, the reality is that so many commercial photos are in dim light that obscures too many great features. This matters no matter what type of property is being discussed; even self-storage facilities need to look worthy of investment!

#5 – Check the Financial Data Again and Present

If the spirit of residential property is emotional, then it stands to reason that the spirit of commercial real estate is certainly about the financial element.

Numbers matter, and if a listing doesn’t have the proper financials, it could be scaring buyers right out of the transaction that barely had a chance to get off the ground.

Does the property in question generate income? If so, how much? If not, what would be needed to turn it into an income-generating property again?

While you don’t have to put those points into a listing, they serve as good talking points at the public showing of the property. It lets the message stand tall in the face of clients, and they get a better understanding of the work they’ll need to put into the property.

#6 – Take Advantage of Free Commercial Real Estate Listings

The key to selling faster is to make sure that you post commercial real estate in places where buyers are paying attention. Free commercial real estate listings are becoming a fast way to generate new attention, even in markets where it feels easier to assume that everyone that would buy the commercial place has already seen it for sale.

That just isn’t true: sometimes the best buyers don’t work across all channels, so it’s important to try to hit the problem from as many different angles as possible.

Make sure that the free listing allows contact information or a way for the buyers to message you to set up a time to look at the property. These small steps could be the difference between another month on the market and having an offer in hand.

The Road Ahead

While there are no guarantees in real estate, the six action-driven steps in this guide are designed to get closer to the overall goal of getting the commercial property sold.

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