Selling commercial real estate for your business is a big step, one that is sure to bring up a number of questions from, “How to sell commercial property?” to “How can I support my commercial broker?” In the following article, we’ve outlined some of the top questions we receive from clients selling commercial space in Denver to help them feel more confident about the process.
This is a great question, and we love to hear that your invested in improving the value of your commercial property. It is always a good idea to keep up with regular maintenance and janitorial concerns, and to fix any broken items in your building. But any major remodeling of your building may not be necessary, especially for hot markets like Denver, Colorado. The best way to identify opportunities to grow the value of your commercial building is to discuss your capital goals with your commercial broker. They will be able to develop a pricing strategy for your property and have a pulse on the commercial market, so they can make suggestions if there is a large gap in your goals and the fair market value of your property.
As a business owner, you are likely already familiar with the phrase, “Communication is key!” This remains true when selling a commercial property. It is important to share your goals and questions at the start of the sales process, as well as keeping your commercial broker in the loop and being responsive while your property is listed for sale. The more open the lines of communication between you and your broker, the easier it will be to move your property when an interested buyer comes to the table.
The simple answer is location, the current market, and the age of the property. Of course there are many moving parts when it comes to determining commercial property value that is unique to your situation. Speaking with a commercial broker to get a broker opinion of value is the best way to get a more concrete understanding of your commercial value.
But whether you’re selling a home or selling an office building, location is a big part of the value. An office building for sale in the Denver Highlands is going to trade at a higher value, than an office building in Detroit. Same goes for a freestanding restaurant space located off of a major highway near residential and commercial developments, over a restaurant at a dead end street, located off of a deserted side road.
Of course, the market will also come into play. Commercial property listings in trendy neighborhoods or fast growing cities like denver will come with a larger asking price. You may also find that newer properties can garner a higher property value than older properties that may require more upkeep or renovations for the new building owner to be able to get a return on their investment.
When thinking about selling your commercial property, we always suggest discussing your objectives and concerns with a commercial broker so you can position your property well for a future sale. If you’re interested in speaking with a Transworld Commercial Real Estate broker give us a call at 720-574-2953 or visit transworldcre.com.
Rachael Holstein is the Marketing Manager for Transworld Commercial Real Estate, a full service commercial real estate firm in Denver, Colorado. Her work experience has been largely focused on business development and marketing in business brokerage, finance, architecture, property management, and information technology. A long time resident of Cleveland, Ohio, she attained her undergrad from John Carroll University and her Master’s Degree from Cleveland State University. In 2013, she relocated to Denver with her husband, Joe, and her furry companions to explore the mile high lifestyle! Visit transworldcre.com for more information.