In today’s competitive commercial real estate market, it’s important to make the most of your building asset when preparing it for sale (Don’t forget, you can only sell your building once!!). Investing in some minor improvements and paying close attention to details can increase the value of your building, set it apart from competitors and quickly attract potential buyers.
Below are some improvement options building owners may want to consider when preparing their building for sale:
MAIN ENTRANCE
The front door is the entrance to a “new opportunity” for the buyer, so it is important to keep the door and the entrance area clean, clear and free of clutter in order to make the area appear inviting.
CURB APPEAL
Curb appeal and the view from the street is very important and what brings the prospect to the building, so always keep this in mind while you are preparing to put the building on the market.
PAINT
A fresh coat of light-colored paint can often take off years of a building’s appearance. If this doesn’t make economic sense, consider pressure washing the building and the sidewalk to ensure it is as polished as is possible.
RESTROOMS
Restrooms are one sign of a building’s overall cleanliness, so make sure they are in tip top shape for prospective buyers. Have a janitorial company regularly clean the building and especially the restrooms.
EXTERIOR WINDOWS
Thoroughly clean the exterior windows. This makes the building look and feel cleaner and it boosts the overall curb appeal.
LANDSCAPE
It helps tremendously to clear out old shrubs, cut back tree limbs, mow, rake and edge the landscape area. If there is money in the budget, add color with seasonal plants and evergreen shrubs. This work will increase its visibility and enhance the property so it will be noticed by those who pass by it regularly.
BUILDING SIGNAGE
If you have a monument sign, cut back any landscape and bushes around it so it can also be better seen from the street. In addition, you might consider adding a coat of fresh paint or pressure washing the sign to make it look clean and new.
INTERIOR IMAGE
If the building is still occupied, some helpful ideas are:
- Clear out unused furniture, unnecessary items and other “stuff” to visibly make room for the new owners and make it seem larger. If you have no place for the “stuff”, consider renting a storage unit.
- Replace the ceiling tiles where they have been stained by roof or air conditioning leaks.
- Paint the interior area where there have been past water stains
- Purchasing inexpensive potted plants or foliage for the interior will also incorporate life and color in the space.
- Replace any burned out light bulbs throughout the building, which makes it seem larger
UTILITIES
You should keep the utilities on during the sale process, especially the electricity and gas. No prospective buyer likes to tour a cold building in the winter or a hot building in the summer.
ROOF
If there are roof issues, have them fixed prior to putting the building on the market. This is one area of a building most buyers focus on and suspect could pose a problem in the future. Buyers will typically want to know the roof’s age and any roof warranty information, so have that information available.
OPERATING EXPENSE HISTORY / TITLE POLICY
Most buyers also want to know the building’s annual operating expenses, so it will be helpful to create a spreadsheet showing these costs over the past 2-3 years.
If you have your original title policy, you will save money because title company will give you a re-issue credit on the new policy.
ONGOING CLEANING AND LANDSCAPE MAINTENANCE
If the building is unoccupied, once a month, have a cleaning crew come to clean the building and a landscape crew keep up the landscape. We find many of our clients cancel these services once they move out, which is a mistake. It can bring down the value of the building, in addition to making it harder to sell the property.
TIMING
It is important to understand the value of your building is reduced as soon as you move out and it continues to drop in value the longer it is not occupied. With that in mind, if you have made the decision to sell your building, it is best to put in on the market while you are still occupying it.
PARKING LOT
It’s always best to keep the parking lot clean. If it is in your budget, you might consider re-surfacing and re-striping the parking lot. This is strictly a curb appeal matter, but it makes a difference and is less expensive than you might think.
