You have a vacant commercial property. How can you make it irresistible to potential buyers?

There is one simple way to stand out to potential buyers/tenants: court, nurture, and reward the brokerage community better than anyone else does. This means paying competitive commissions and paying immediately a lease is signed (not waiting 30-days or whatever) or when it closes. We have a client who owns and manages several million square feet of office space that they've kept close to full occupancy through all the turmoil by employing this simple approach: Recognize that brokers are your partners and make sure they are respected and well compensated.

First impressions in commercial real estate are vital. Begin by ensuring your property is well-maintained and visually appealing. This includes fresh paint, a clean exterior, and tidy landscaping. Inside, think about renovations that modernize the space and enhance its adaptability for different business uses. Upgrading lighting and installing energy-efficient systems can also be attractive features. The goal is to help potential buyers visualize their business succeeding in the space, so make it as inviting and versatile as possible.

Enhancing the appeal of a commercial property is essential, as first impressions play a critical role. Begin by ensuring the property is well-maintained and visually appealing, with fresh paint, a clean facade, and well-kept landscaping. Internally, consider renovations that modernize the space and increase its adaptability for various business needs. Upgrading lighting fixtures and installing energy-efficient systems can also make the property more attractive. The goal is to create an environment where potential buyers can easily envision their business thriving, making the space as welcoming and versatile as possible.

Commercial property is about income, not aesthetic. Real buyers won't care how it looks -- they'll simply want to know the highest and best use for the site that translates to the highest projected NOI and valuation. The best way to enhance the appeal is by knowing the numbers, and providing a few scenarios for the highest and best use. Spending money on paint, landscaping, etc is a waste of money until the highest and best use has been determined.

Marketing your property effectively involves more than just listing it—it's about crafting a compelling narrative. Use high-quality photos and virtual tours to highlight the property's best features and create an engaging story around its location. Emphasize advantages such as high foot traffic for retail spaces or proximity to transportation hubs for office locations. Showcase any unique selling points that set your property apart from others on the market. The aim is to convey that potential buyers are not merely acquiring a space, but investing in a strategic advantage for their business.

Market the property by highlighting the opportunity. - What is the as-is market rent and use? Who would be ideal tenant(s)? What rent would they pay? - What is the highest and best use? Who would be ideal tenants? What rent would they pay?

A vacant commercial building can be a benefit in many cases. Rather than being stuck with a tenant that has below-market rent, the new buyer can lease the property at 100% of current as-is market rate. Instead of cutting price to accommodate for the lease-up risk, offer an escrow hold-back to cover potential costs like tenant improvements (T.I.s), taxes, insurance, maintenance, and debt during the lease up period until the new buyer is likely to lease up the property. This may encourage the buyer to pay more today for a vacant building since you, the Seller, are willing to bridge the buyer financially to stabilization.

Pricing your property wisely is crucial for attracting buyers while ensuring you receive fair value. Begin by researching the current market to determine the selling prices of similar properties and adjust your pricing strategy accordingly. Take into account factors such as location, size, condition, and potential for growth. To make your property stand out, consider offering incentives like a reduced price for a quick closing. Your pricing should accurately reflect the value of your property while aligning with market realities, striking a balance between competitiveness and profitability.

In today’s rapidly evolving business landscape, adaptability can be a major advantage. Offer terms that cater to diverse buyer needs, such as financing options or lease-to-own plans. Be open to negotiating aspects like closing expenses or improvement allowances. By showcasing your willingness to accommodate different needs, you demonstrate a commitment to finding mutually beneficial arrangements, thereby increasing the attractiveness of your property

To help buyers envision the potential of your vacant property, offer them development suggestions or viable business models that could thrive in the space. Highlight future growth prospects in the area that could enhance property value. For retail properties, provide insights into local consumer demographics. For office spaces, emphasize the benefits for employees, such as location convenience. The goal is to help buyers imagine not only the current state but also the possibilities for the future.