– How to Identify and Liquidate Surplus Commercial Investment Properties –
Commercial real estate investors often have to evaluate whether their real estate assets are continuing to generate the highest and best value. It can cost you money to carry a property that is underutilized and not meeting your investment needs.
Identifying surplus real estate assets and then liquidating them can be an overwhelming process, and the issues involved can be compounded if you have unclear investment criteria.
Here are five steps to help you update your investment criteria, identify and categorize Commercial Investment Properties that aren’t performing, and liquidate your surplus commercial real estate assets:
Clearly identify your commercial investment criteria.
Investors often have rapidly evolving investment criteria. The strategy you used back in 2007 no longer works in today’s economic climate. As a result, it is important for you to closely analyze your investment criteria on a regular basis.
Identify whether the commercial investment property still meets your evolving investment criteria.
Having underutilized space can be costly. As an investor, you need to analyze and identify whether the property in question is meeting the highest and best use for your investment dollars. Questions need to be asked such as: Does this property meet my present businesses needs? Is the property generating value, either through a profit or by adding value to my business? Is the purpose of the building still in line with my investment goals? Is this the greatest value for this particular property?
Determine if the commercial investment property could generate greater returns through another use.
If your space no longer meets your investment needs, it is time to look at other options, such as the present and future uses of the property.
In many cases, a commercial investment property can be revamped to meet different needs. A minor variance, or even a rezoning, can upgrade the value of the property. If this is not possible then the property needs to be considered for liquidation.
There is no value in holding onto an asset that is not producing the maximum benefit for your property investment portfolio.
Enlist the assistance of a qualified commercial real estate agent.
A qualified professional agent with commercial investment experience can help you to determine the highest and best use of your commercial investment property.
Since real estate markets change frequently, good agents know what buyers are looking for and can recommend the changes you may need to make in order to make your property market-ready.
Furthermore, experienced commercial investment agents often have a network of investors who may be interested in your property – a ready pool of potential buyers.
Take the necessary steps to list the commercial investment property for sale.
By listening to your agent’s advice, you’ll have an idea of the kinds of things you need to do to get your surplus commercial investment properties ready to sell.
These are things that will make your property more appealing to buyers and more competitive in a buyer’s market.
Preparing your commercial investment property for sale and marketing the highest and best use will help you get top dollar for your surplus property in the shortest amount of time.
Contact a Commercial Real Estate Expert today: