$6 trillion — that’s how much the commercial real estate (CRE) in the United States is worth. Of that figure, the retail sector has the biggest share, with an estimated value of $2.1 trillion. Hotels, office buildings, apartments, and industrial are the four other drivers of CRE in the U.S.
That’s not all though. In the first quarter of 2019, the amount of space under construction was over 110 million square feet.
All that should already tell you how tight the competition is in the CRE industry.
The good news is, an experienced commercial real estate agent can put you a step ahead of the competition. A professional can help you sell your property not only faster but also at the best possible price.
The question is, how will they do this and what other benefits can CRE professionals bring to the table?
All that, we’ll uncover in this post, so make sure you keep reading!
Selling commercial property on your own is harder to pull off than a DIY house sale. That’s one of the first things you need to know before you consider a DIY that sale of your commercial building.
For instance, if you’re selling a flipped house, there’s no income stream involved. The buyer, after all, is only likely to live in the house. If they decide to rent it out, that’s completely up to them.
On the other hand, if you sell a commercial property, buyers need to know what their returns will be. You need to prove that your property’s location will drive traffic to their business. You need to show them evidence, such as records of property income and performance.
That’s only one example that highlights the complexity of selling commercial properties. The good news is, that’s one of the many areas a commercial real estate broker specializes in. Exceptional brokers and agents will handle the paperwork and negotiations for you.
By handling the paperwork and negotiations, an agent already saves you a bundle of time. But that’s not the extent of what they’ll do for you (and save you time for).
The top commercial real estate broker or agent will compile and go through all listings. From here, they’ll monitor the listings and update them as needed. They’ll also get in touch with listing agents, arrange property tours, and handle LOIs.
They’ll handle all correspondences with potential buyers and buyers’ agents. If you choose to, you can have your CRE broker or agent carry out the property tours too.
They’ll also ensure your property meets state and local zoning laws. Furthermore, they’ll prepare and execute the sale documents to facilitate a closing.
Imagine if you were to carry out all these tasks on your own. Not only will these take your freedom away — you may also make mistakes that can be the downfall of a potential sale. That’s why it’s best you hire one of the most experienced commercial real estate firms in Boston.
Did you know that between 2008 and 2010, offices values in various areas of Boston dropped 48.9%?
The main reason? Sellers decided to sell their properties too late. They were complacent, they overvalued their property, and they feared potential losses.
An experienced commercial real estate brokerage can help you avert these losses. They’ll give you an accurate valuation of your property so that you know how high or low you can get. Also, by working with CRE pros, you can avoid the dangers of complacency.
Commercial real estate agents will do the bulk of the work for you, and they’ll do it fast. They know that even the slightest delay is already risky due to market fluctuations. That’s why they’ll get started on your property’s sales process as soon as you hire them.
Just as sellers are afraid of losses, buyers also fear potential risks. That’s the main reason buyers often give low offers at the beginning.
For example, they enter the market thinking that properties may have hidden flaws. These concerns may be structural problems, plumbing issues, or pest infestations. If they were to buy a property with these “defects”, they’ll have to spend more on repairs and replacements.
Another concern they likely have is the potential occupancy rate. They worry that your property may have a considerable vacancy rate.
That’s a concern that only the best commercial real estate agents can squelch right away.
First, they’ll show how Boston commercial properties fare better than other U.S. states. After all, the state’s commercial property vacancy rate was only 12.8% in the last quarter of 2018. Compare that to say, Delaware’s office space sector, which was at 17.1% during the same quarter.
That’s why it’s not surprising for buyers with this kind of thinking to offer a lower price. After all, they’d want to counter these potential additional costs.
You shouldn’t let these buyers sway you to bringing your price down. What you need to do is to prove that your property is risk-free. One way to do that is to give them a well-organized, detailed report of everything about your property.
A commercial real estate agent will take care of these reports and evidence for you. Plus, your CRE agent will explain all parts of the reports to potential buyers to make them even more at ease. They’ll prove to buyers that your offer price is reasonable and feasible.
As you can see, there are so many things that a commercial real estate agent can do for you. The bottom line is, an experienced CRE agent is the key to getting your property off the listings ASAP. And of course, they’ll make sure that when you close, it’s with the best possible price.
That’s why the sooner you hire a reputable agent, the sooner you can secure and close the deal. From there, you’ll have more time to focus on your business.
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