If you are thinking about selling a commercial property in this challenging market, whether it’s a warehouse, office, retail or a mixed used building, there are a number of things you can do to get everything in order before a sale is agreed. The following will give you the best chance of ensuring that the sale process goes as swiftly and cost efficiently as possible.
Key considerations:
Property valuation – A professional property valuation is an essential step in determining the accurate value. A commercial surveyor will consider factors such as location, condition, market demand, and potential rental income.
Statutory and regulatory requirements – Any buyer will want to ensure that all statutory and regulatory requirements are up to date when they purchase the property. This would include a valid Energy Performance Certificate of at least the minimum efficiency rating of E, fire risk assessment, asbestos report, and planning permission.If any of these things are missing, then you can expect a buyer to ask you to rectify them at your own cost.
Lease agreements – If your property has existing tenants, you will need to ensure that their lease is tidied up ahead of agreeing a sale. For example, that no leases have been allowed to expire with tenants continuing to occupy outside the term of lease, and all rent reviews have been carried out and documented in accordance with the terms of the lease. Having long-term, stable tenants in place can add value to your property. Also, buyers will want to know the details of rental income and lease terms.
Selling costs:
Solicitors fees – Solicitors usually carry out conveyancing for a fixed fee. It is worth obtaining a number of quotes.
Agent’s fees – Most agents typically charge between 1% and 3% of the property value. Obtaining competitive quotes is key, and you may be able to negotiate the fee.
Capital gains fees – You should speak to your financial advisor if you are selling an investment property as you might be liable to pay Capital Gains Tax.
Removal costs – Should you need to remove equipment, furniture or other assets which are not part of the sale, you will need to remove these at your own cost.
Marketing your commercial property
To ensure effective marketing of your property that can generate interest and lead to competitive offers, you should contact a commercial agent who can create a compelling listing highlighting your property’s strengths. High-quality photographs, accurate description, location, and potential uses can make a significant impact. You may consider marketing through multiple channels if you want to target investors and developers. An experienced commercial agent can also handle negotiations and guide you through the sale process.
Negotiating and accepting an offer
When presented with multiple formal offers, there are a number of factors to consider when deciding, such as:
Consider the position of the buyer and their financial status. Are they a cash buyer or do they have a mortgage? Is their funding already in place – do they have a finance offer?
Are the offers subject to any conditions?
Insurance obligations.
For more information or to find out how we can help you to sell or let your commercial property then please contact me.
