As commercial real estate advisors, we love what we do and hope our clients find value in our services. That being said, certain circumstances may not always call for the use of a broker to lease your space.
In this article, we will outline the steps to list your own commercial property.
Listing a commercial property takes time and effort. Before you begin, you should research the market, determine your objectives and outline a plan to guide your real estate decisions.
The following questions will help you get started:
You should also specify alternative courses of action if you aren’t able to lease your property in your desired time frame. You could consider lowering the price, making improvements, increasing your marketing budget or hiring a broker.
To effectively list your space, you will want to gather all relevant property information. First, locate floor plans, signage information and insurance records. You should compile any documents regarding recent improvements or property inspections. Be sure to also calculate your past and present operating expenses. With this information in hand, you will be prepared to answer questions that potential tenants may ask as they conduct due diligence.
Your first step in marketing the property should be cleaning the space. You will then want to take quality photos of the property’s interior and exterior to share online along with property information. We recommend posting on Craigslist and Facebook to reach a wide range of potential tenants. If you’re willing to invest a little more, you could also post to various online listing sites or in local news publications.
Other marketing tactics to promote your property include a For Lease sign in the window or in front of the building. You could also print brochures or postcards to send to neighboring businesses and other potential leads.
Interested parties will submit non-binding Letters of Intent (LOIs) outlining their proposed lease terms. Read through these documents carefully to decide which deal is best for you and your property. You can negotiate particular deal points that don’t match your objectives.
When both parties accept the terms, a formal lease agreement will be written up based on the deal points in the LOI. Before signing, review the contract with your lawyer. Once the agreement is signed, the deal closes. You will need to provide your new tenant with access to the space and coordinate payment methods and any property improvements. Then you can celebrate your success and begin enjoying a steady rental income.
We wish you the best with your upcoming commercial real estate transaction!