Top 5 Insights for All CRE Owners Today
Take action today to set your property up for success with this summary of today's market.
Whether you're selling or just holding, here's a snapshot of the 5 insights you need to know as an owner today.
Here are the top 5 insights for commercial real estate owners that we’ve compiled from working day in and day out in the Southern Oregon market:
1. Reduce perceived risk.
Getting ready to sell? Eliminate the low-hanging fruit of problems. Problem tenants, glaring repairs, even just a deep clean—all of these have an exponentially negative effect on perceived risk (and value) of your property. Buyers and tenants won’t overlook potential problems like they may have in years past.
2. Don’t stretch the listing price.
If a buyer’s offer wouldn’t be within about 5-10% of the list price, we’re seeing buyers just move on to the next deal. Even just last year, buyers would at least be willing to spend the time to write a lower offer - not so much these days.
3. Identify the 2-3 key selling points, and dial them in.
Each property has 2-3features that really matter and will make the difference in sales and leasing.Think location, yard space, lease term, etc. When it’s time, we’ll figure out the key selling points of your commercial property in Southern Oregon and go all in on making those the best they can be.
4. Meet the buyers (and tenants) where they are.
Maximum exposure is anon-negotiable when selling or leasing. Your listing needs to be on as many platforms as possible. Trying to find a tenant? Try Facebook Marketplace and make sure your broker runs paid ads on Meta and other platforms specifically for your property.
5. Occupancy is again more valuable than maximizing rent growth.
Given the longer vacancy periods we’re seeing, it’s typically the right move to keep existing tenants happy instead of forcing a turnover for maybe a small rent increase.
Everyone in the industry would benefit to remember that what was likely the peak of the market—around November 2021—was 1,335 days ago (!) Adapting to today’s market can still lead to great results in both selling and leasing, regardless of the greater economy.
Disclaimer: This content is provided for informational purposes only and only reflects the personal opinions of the author. It is not intended as professional or investment advice, or a substitute for consulting qualified experts in tax or law. Always consult your CPA, attorney, and all other qualified professionals prior to making investment decisions. While we strive to present accurate and up-to-date data, we make no warranties or representations regarding its completeness, reliability, or suitability for your specific situation. Always seek the guidance of licensed professionals before making any decisions related to commercial real estate investments or transactions.