The value of commercial real estate, like residential real estate, frequently hinges on location. Ideally situated only an hour from the Atlanta metro area, Alpharetta boasts a healthy economy. This makes it an ideal commercial real estate location. Those looking to sell a commercial building in Alpharetta, GA are likely to find success in the market.
If you have commercial real estate property in Alpharetta, you might be wondering if now is the right time to sell. The “right time” to sell commercial property is best described as a moving target, especially during the ongoing Covid-19 pandemic. In truth, the “right time” comes only after you’ve weighed your options. In addition, you must research the market and take care to organize and assess your goals.
What Kind of Commercial Real Estate Do You Own?
Every commercial real estate space eventually has its season of popularity. And, when you’re considering putting yours on the market, it’s important to understand the current market trends. Office space will continue to face problematic occupancy issues until the Covid-19 pandemic eases up. Only then can employees return safely to their office buildings. Hence, right now, warehouse space is a hot commodity.
What are the Local Comps?
All potential CRE sellers need to understand the comps in their area. “Comps” is shorthand realtor speak for “comparable” sales. Comps provide a potential seller with unbiased expectations. This can help you know if selling your CRE is a financially sound idea. If you’re offering a niche space that offers buyers a unique opportunity, then comps will illustrate this nicely, and you’ll be better able to leverage that opportunity. Comps can also highlight certain improvements that may boost your listing into more competitive numbers. For example, if a similar commercial property sold more quickly than others, what was it that made it so attractive? Can you incorporate that enticement into your listing?
Forecasting Changing Tax Laws
One crucial element CRE sellers in Alpharetta don’t always consider when listing their properties is how important it is to check the financial forecast. Are tax law changes imminent? If so, do the tax law changes make selling now a better decision than selling later? The tax law is ever-evolving. So, when possible, a CRE seller should consider how income from a sale will be affected by their tax obligations.
Maintenance vs. Remodeling
Frequently, commercial real estate sellers want to divest from their properties because they feel it will be easier to sell the space than it will be to fix it up. While this is understandable, it’s important to perform at least some maintenance on your building before listing it. Maintenance should be distinguished, however, from a complete remodel. CRE buyers often come in with their own ideas. Hence, they’ll be less concerned with the type of light fixtures you have installed than they will be with the integrity of the electrical wiring.
Locating and Organizing Paperwork
The buying and selling of CRE can be tedious and is often heavy with paperwork. When buyers locate and organize all of the necessary paperwork, the transaction moves more quickly, and frustrations are minimized. If you’ve owned your commercial space for several years, it may take longer to track down the appropriate paperwork. So, the sooner you start, the better. Sellers can get the ball rolling faster when they have their title documents, their tenant lease agreements, financial statements, and any relevant encumbrance paperwork readily accessible.
If you’ve run your comps, considered the tax implications, and performed the required maintenance, you’re probably chomping at the bit to get your Alpharetta property listed. If you have tenant-occupied property, however, you’ll need to comport with the terms of your lease agreement when transferring title over to another owner. Most of the time, CRE is more attractive to buyers when it’s already occupied by a reliable tenant who’s current on their rent.
Your Alpharetta Commercial Real State Attorneys
The attorneys at McBride & Ceballos work extensively with commercial real estate sellers in Alpharetta. And, we understand that when you’re ready to sell, you want honest and effective guidance. We prioritize aiding our clients through smooth commercial property transfers. If you feel it may be the right time to sell a commercial building in Alpharetta, GA, contact McBride & Ceballos Commercial Real Estate today.