BEST PRACTICES WHEN PREPARING YOUR BUILDING FOR SALE OR LEASE
By: John Boyd
It has been my experience that putting your building in the best possible condition will enhance its marketability, shorten time on the market, limit carrying costs and maximize cash flow. In my 40+ years of experience working in commercial real estate, I have learned many tips and tricks for how to best present a building for sale or lease. These are divided between the exterior and interior, and while some steps are very basic and inexpensive, others require more effort. I recommend doing as many of these steps as possible to showcase your building in the best light to attract many potential users.
The exterior of your building can set the tone for a walk-through with a potential buyer or tenant, so it is important to make a good first impression.
- From April through November, keep the lawn and landscaping in top shape: e.g. cutting the grass, edging beds, trimming bushes and trees, planting flowers, using mulch where needed, and minimizing outside storage and scrap will enhance curb appeal.
- Trash areas should be clean and orderly.
- If possible, repair, seal, and stripe parking areas and drives. Sidewalks and curbs should also be repaired where needed.
- Painting the building a neutral color is recommended.
- During the winter prompt snow plowing is required.
- Keeping the yard and grounds in good condition year-round is essential.
A well-maintained interior can really help the purchaser or prospective tenant envision themselves in your building.
- Office areas should be cleaned and repainted. A fresh coat of paint makes a great impression.
- Replace any damaged ceiling tiles around the office, upgrade light fixtures with LED bulbs, and any remaining furniture should be orderly, with all surfaces cleared.
- Severely damaged carpet or tile should be either removed or replaced.
- Restrooms should be cleaned, serviced regularly, and updated where appropriate.
- Doors should be repaired where necessary.
- In the event the offices are heavily partitioned we suggest removing any surplus office walls to open the flow and appearance.
If you have warehouse or shop space, keep these things in mind:
- Area should be completely cleaned with walls and columns painted.
- In the event there are nonbearing walls, removal will enhance visibility and allow future users to see how the space can be used.
- The floor should be repaired and sealed with a clear epoxy.
Preparing your building to attract quality users will significantly reduce your carrying costs and improve your cash flow and yield over time. While you do not necessarily need to overhaul your space, remember that small changes can keep your building looking in great shape and attract prospective buyers or tenants.
Looking to sell or lease your property but wondering how best to get started? Contact Signature Associates to schedule a personal inspection with one of our best-in-class brokers for their recommendations and subscribe to our newsletter here for even more industry updates.
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