A common question when we are appointed to lease or sell a commercial property is “how long will it take?”
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In this episode:
00:24 – Honestly, it’s impossible to predict
00:40 – Are you being realistic?
02:20 – Is your property attractive to investors?
02:50 – Factors that may help reduce time on market
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I’m Anna Lynch from Perth Commercial Property. Today, I’m going to address the question we are often asked by new clients looking to sell or lease their property and that is “How long will it take?
How long will my property be on the market?”.
To be straightforward, we cannot tell you an exact time. It’s something we just cannot predict. However, we can advise on a quite a few factors that will ultimately determine the length of time that your property remains on the market. In general, a well-priced property will rarely be on the market for very long.
The question becomes “What is a well-priced property?”.
In establishing a sales or leasing price for your property, you should consider the following factors: Any comparable recent sales or leasing evidence in your suburb. Obviously, the more recent that evidence, the more you can use that to rely on if you like.
You want to have a look at and consider the general state of the market. What’s the confidence in the market doing? Is there an oversupply or undersupply of properties.
You need to consider the type of property you’re selling, it’s size and also its location. For example, a 2,000sq m A-grade ofice in the CBD will attract and need to be marketed to a different section of the market to say a 500sq m warehouse in Osborne Park.
Another factor that you may need to consider is, are you planning to price your property such that it meets the market, or are you looking to put it on the market at a little higher and see if you can secure a little more?
Sure, we implement this strategy at times and, quite often, we may get a little more, but on the other side, you need to be aware that the property may sit on the market a little longer. In fact, there’s every chance that we may not secure more than what the market is willing to pay.
Another point that you should consider is where you are selling the property. Are you selling as a going concern, meaning there’s a tenancy in place, or are you selling a vacant possession?
In the instance where you’re selling as a going concern, is the tenant that you have … Are they a good, a quality tenant? Do they have a long-term lease? What type of rental are they paying? Will it be an attractive return to an investor?
Let’s consider some of the factors that you can implement to try to reduce the time that your property remains on the market.
The first point to mention is advertising. You need to ensure that you have a highly professional presence on the internet and you must be listed at least on the main internet sites for commercial. Your internet ad needs to look professional. It needs to look smart.
You should ensure, where applicable, that you’ve got professional photos taken. They aren’t just photos that you’ve snapped from your iPhone as you were traveling along in the car.
You should certainly consider a road sign. It is super important. We have a very high level of inquiry coming in from the use of road signs. A road sign needs to be a good size, not a tiny little size. It needs to give appropriate information that people driving past will want to see, but then we don’t want to give them everything. We want to just give enough information so that they do need to call and that way we can assess what they’re looking for and get any potential feedback at this early stage on your property.
The next point that you should consider is that you may want to make sure that you’ve fully established your strategy before you leased your property. You want to know do I want quite a short to medium turnaround with my property? Am I prepared to meet the market to ensure that I achieve this turnaround time or am I happy to go for a medium to longer term strategy knowing that my property might not turnover quickly … It might not turn over at all … On the chance that I may secure a higher sale or rental value.
The third point that I’d like to mention is that when you do decide to go with a commercial agent, ensure that they are experienced, you can trust them and they do what they say they’re going to do.
As I’m sure you’re aware, an alliance with such an agent is really worth it’s weight in gold. I’m Anna Lynch from Perth Commercial Property. Please be sure to give me a call should you have any questions.
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