Why Hasn't My Commercial Real Estate Sold?

The approach to selling Commercial Real Estate has more to do with what Marketing Strategy is used than having the wrong price. Although pricing needs to be evaluated, the number of property inquiries is a better measurement.

CRE Marketing and Pricing is based on what the Highest and Best Use of the property. There are a number of considerations to consider.

Should a property have a long-term tenant with a long-term lease, the marketing and pricing strategy would focus on the Investment Community. Pricing considerations would include financial stability of the tenant, terms of the existing lease as well as what the Capitalization (CAP) rate is.

If the property is in an Industrial Park or Retail Center and has no long-term leases in place, chances are that the target market would be an Owner/User. The pricing considerations would include monthly mortgage payments vs. current lease rates. Should the seller be interested in offering Seller Financing, that could also influence the pricing.

One of the most significant considerations is for a property owner whose property is in a Commercial Redevelopment Area (CRA) or Planned Commercial Development (PCD) zone. Marketing would focus on developers active in that area that specialize in the allowed Zoning.

Pricing for these types of properties would be based on the Highest and Best proposed Use. A good example of these properties are Retail Shopping Centers converting to Multi-Family Apartments.

Working with a Commercial Real Estate Specialist not only helps property owners sell their properties, they also help in marketing and securing the highest and best offers.