Sell Your Commercial Property

Why commercial sales need a different plan

A house sells to people who want to live in it. A commercial property sells to investors who want income, owner-users who want space for their own business, or builders who want the land. Each group asks different questions, and the price each will pay depends on different things.

That is why we start by working out who your likely buyer is. An office building with long leases appeals to investors and is priced largely on its income. A vacant warehouse may sell best to an owner-user who will pay for the right location. A site with redevelopment potential may be worth most to a builder. Getting this right shapes the price, the marketing and who we call first.

How we value your property

For income property we begin with the rent roll and the expenses. We work out net operating income, check lease terms, renewal options and recoveries, and compare the result with what buyers are paying for similar income today. The cap rate a buyer will accept depends on tenant strength, lease length, location and the condition of the building.

We see this from the buyer's side too. Our team has bought commercial buildings for clients across BC and Alberta, and on those purchases we negotiated reductions such as $0.6M off an office building in Kamloops and $0.5M off a medical building in Vernon. We know how buyers pick a property apart, so we prepare your sale with that in mind.

For owner-user and land sales we look at comparable sales, zoning, permitted uses and what a buyer could build, and we show you every figure behind our recommendation.

Preparing the sale

Buyers of commercial property ask for documents early, and slow answers cost deals. Before we launch, we gather the leases, rent roll, operating statements, property tax and utility figures, any environmental reports, building plans and a list of recent work on the building.

We also look for issues a buyer will find anyway: a lease close to expiry, a vacant unit, deferred maintenance or a zoning question. Some can be fixed before listing. Others are better explained up front so they do not derail a deal after the buyer has spent money on due diligence.

Confidential marketing and qualified buyers

Many owners do not want tenants, staff or competitors to know the property is for sale. We can market it privately: a short summary without the address goes to our network of investors and owner-users, and full details are released only after a buyer signs a confidentiality agreement.

Where a wider launch suits the property, we list it publicly with a complete information package. Either way, we qualify buyers before they tour. We ask about their financing, their timing and how they intend to use the property, so your time is spent on buyers who can close.

Our recent commercial listings include an office at 2626 Croydon Drive in Surrey, an industrial and retail property at 12299 112a Avenue in Bridgeview, an office and retail unit at 1336 Johnston Road in White Rock, an office unit on Scott Road at 9015 120 Street in Delta, an office at 2992 Glen Drive in Coquitlam and land at 2185 200 Street in Langley.

Offers, due diligence and closing

Commercial offers usually include a due diligence period. During it, the buyer's lender, lawyer, accountant and consultants review the leases, finances, building condition, environmental reports and title. We keep that process moving, answer document requests quickly and stay in touch with the buyer's side so problems surface early.

We compare offers on more than price: the deposit, the length of the due diligence period, financing conditions, the closing date and the buyer's track record all matter. Once conditions are removed, we work with your lawyer and accountant to close on time. Tax questions, including GST and capital gains, should go to your accountant before you sign.

Selling a business with its property

If you own both the business and the building, you can sell them together or separately, or sell the business and keep the building as a landlord. Each choice changes the price, the buyer pool and the tax result. We help you think it through with your advisers and then market the sale to the right buyers, with confidentiality agreements in place before anything sensitive is shared.

Areas we cover

We work from White Rock and sell commercial property across Surrey, Langley, Delta, Abbotsford, Coquitlam and Metro Vancouver, and our clients buy throughout BC and Alberta. If you are not sure whether now is the right time to sell, start with a confidential valuation. There is no obligation, and you will know what your property is worth and who is likely to buy it.