Selling/Leasing Winnipeg Commercial Real Estate

SELLING COMMERCIAL REAL ESTATE: HOW A REALTOR® CAN HELP

It takes months of preparation to ready your property for sale and that is before you ever interview a prospective buyer or set a sale price. 

• Initial Consultations: Let’s discuss what goals you have for your property and whether or not you are better off selling or leasing commercial space. I will lay out all of the options in a clear way so you can make an informed decision. 
• Discuss Property Details: When selling property it is important to note whether or not the land itself is included. Managing the structure means looking into the last time permits were done, when the roof was last updated, the windows last replaced and any other updates/modifications that were done. 
• Asset Management: Before a proper valuation (next step) can be done it is important to take stock of the major selling features of the building. This means local market research including traffic counts and rate of foot traffic, zoning, permitting and any other factors that might contribute to the overall success of a business. Looking to the future is always recommended and REALTORS® will have valuable insight into what is coming down the pipeline. 
• Valuation: When valuing a commercial property an experienced REALTOR® will consider market value and income value. This will give both sellers and agents an idea of the complete value of a property. From here, I will work with clients to create a pricing strategy that suits their needs. If you want to sell fast, I’ll put together an aggressive sales pitch designed to sell fast. If you aren’t concerned with the timeframe let’s aim for a more selective approach to bids. 
• Market Your Property: I will make sure that your commercial space is listed with great photos, informative content that showcases all of the positives of your property. Video footage and social media posts will get the word out about your listing to my network of existing clients, other REALTORS® and prospective buyers. 
• Touring: When selling a property a REALTOR® will go through all of the fine details of a property with potential buyers, as well as their commercial real estate broker. Prospective buyers are thoroughly vetted and finances are confirmed before any tours are scheduled.
• Negotiate: In real estate, buyer wants are much different from seller wants. As your representative I will negotiate with potential buyers to achieve the highest sales price and best terms for you. 
• Due Diligence: Research and assessments of any property happen at the beginning and end of the sale process. Following a confirmation of funds and the drafting of a purchase agreement your REALTOR® and an experienced broker will review terms and finalize a list of high priority tasks and a timetable that meets your needs.

An experienced REALTOR® will help to fill in the gaps for clients that are looking to lease out their space. It is important to properly vet tenants and create leases that protect property owners and the building itself. Discuss the different types of lease terms and decide which one best meets your needs. 

Leasing Terms You Should Know 

Incidental Expenses: any costs on top of base rent, ex. Property tax, utilities, insurance, inspections, repair costs, etc. 

• Common Area Maintenance: fees for maintaining communal areas, ex. snow removal, janitorial services, landscaping, grass cutting and property management 
• Gross Rent Lease: tenants pay a single fee to cover all incidental expenses and base rent 
• Modified Gross Lease: tenants and landlords split incidental expenses. 
• Net Lease: covers base rent and one other incidental expense, usually property tax. Landlords are responsible for all other costs. 
• Triple Net Lease: includes base rent and all incidental expenses and maintenance fees. Landlords are responsible for structural repairs and maintenance. 
• Percentage Rent Lease: the cost of base rent plus an additional 10% of gross sales over a minimum amount. Common with multi-unit retailers like malls. 
• Tenant Improvement Allowance: Occurs when landlords provide tenants with a set cash amount to pay for renovations to the space. 
• Tenant Inducement: any incentive to potential renters, usually comes in the form of a rent break for a set number of months. 
• Trade Fixtures: includes any items in a leased space that can be removed when renter leaves the property. Typically involves items like furniture, inventory, electronics and office equipment. 
• Turnkey Improvements: renovations made by the landlord at the request of the tenant, usually completed before possession date. 
• Leasehold Improvements: any renovations or improvements completed by the tenant which then become property of the landlord. Examples include flooring, built-ins like shelving and machinery like ventilation systems, air conditions or fixtures. 

Whether you are hoping to lease a commercial space or are selling your commercial property, just give me a call! Know someone who wants to sell but doesn’t know where to start? Send Them My Way!