Commercial properties haven’t always been hot commodities in recent years. In the office sector especially, high financing costs and shifting work patterns have led buyers and sellers to exercise caution. This has resulted in a slower and more challenging sales environment in many places, and the Austin market is no exception.
However, that’s not to say you won’t experience a smooth sales process. It’s often possible to make a commercial property look desirable to a buyer by taking a few key steps.
Spruce Up the Exterior
The exterior is the first thing potential buyers see when they visit your property, so give it the makeover it deserves. Hire a sealcoating company to maintain the parking lot and pressure-wash the building before applying a fresh coat of paint.
If there are any visible problems such as leaking gutters, dirt, overgrown plants, or similar issues, fix them at the same time. Walk the property with a critical eye and put yourself in the buyer’s shoes, and you may find it easier to clean things up so it stands out for the right reasons.
Maximize Its Earning Potential
Most people viewing commercial properties for sale are looking at them for their cash flow. Because of this, it makes sense to maximize your property’s income and lease structure to show it in the best possible light.
Negotiate with your current tenants to renew their leases early to increase your weighted-average lease term (WALT), which helps demonstrate stability and lower risk to investors. You might also maximize revenue by leasing unused space such as empty land or parking lots and installing amenities such as vending machines.
Make Important Upgrades
Dated flooring won’t be a deal-breaker for most buyers, but some upgrades can certainly help seal the deal. For example, you can create more flexible layouts in your building to appeal to a wider range of potential tenants and modernize spaces such as lobbies and restrooms.
Make sure your building complies with ADA requirements and keep all compliance documents handy. These might be pain points for an investor, and you’ve already resolved them.
Prepare Comprehensive Documents
You don’t want anything to hold up your sale, which is why providing all necessary information and being transparent is crucial. If you hold anything back, you risk being held up in negotiations or having a sale fall through at the last minute.
Provide a comprehensive information package with site surveys, floor plans, maintenance records, and rent schedules. Where necessary, address or disclose deferred maintenance to avoid negotiation points like price reductions or seller concessions.
Market It Wisely
A successful sale of a commercial property can often come down to pricing and marketing. Price it based on current Austin market comps and use strategies such as high-quality photography and virtual tours.
You can also explore social media campaigns to appeal to investors and owner-users alike. Be sure to showcase your building’s value-add potential as much as possible, including opportunities to develop underutilized spaces or increase rents.
Don’t let your property sit on the market for months. Be proactive and make it stand out with fresh renovations, comprehensive documentation, and an attractive exterior.
