In Southern California, there are currently several more buyers than there are sellers. As a result, sellers have the upper hand. This may be helpful information for Los Angeles investors who own commercial properties and offer commercial leases but might be interested in selling their properties.
Selling a commercial property can be tricky, and those trying to sell their properties may experience hurdles for a number of reasons. First, their buildings may be overpriced. It can be helpful to view recently closed sales and compare them with what is currently available on the market, checking for upward and downward trends. This is essential in determining the value of a building to be sold.
Another reason selling a commercial building in California may be difficult is that it is lacking an important amenity. For instance, logistics buildings that have low ceilings, or spaces with challenged loadings, may be challenging to move. Another potentially difficult-to-move property is a service depot that does not have a storage area in which to keep trucks outside. Use restrictions are another important consideration when selling commercial property, as a buyer may not be able to use one’s for-sale property in the way he or she needs it to be used.
Having realistic expectations is paramount when it comes time to sell a commercial building, including one offering commercial leases, in Los Angeles. An attorney can help with navigating each step of a commercial real estate deal so that one’s needs and desires are met. The attorney’s ultimate goal is to ensure that one’s rights are protected and that a personally favorable outcome is attained, considering the circumstances surrounding the deal.
Source: ocregister.com, “Commercial real estate: 5 reasons your building isn’t sold yet“, Allen Buchanan, July 22, 2017