You own a commercial real estate property in Toronto and are reflecting on your hold vs. sell options, and are mapping out what you’d ideally like to do if you were able to pull a significant amount of capital out of the sale of one (or more) of your commercial assets.
A key consideration at this juncture could be the following: is entrusting a commercial real estate broker with the sale of this important asset in your portfolio the right course of action? The answer is “yes,” if:
- the broker has specialized knowledge and experience in the Toronto commercial real estate market, having a clear understanding of the current trends, property values, due diligence required, and the nuances of the specific asset type (e.g. office, retail plaza) as this can help in setting the right listing price and negotiating effectively;
- the broker has an extensive network (connections with investors, other brokers, and industry professionals can expedite the sale process) and experience with using marketing effectively in order to reach a wide range of potential buyers;
- the broker has the time and commitment to serve your best interests. Selling a commercial real estate asset at the maximum price that the market can bear is both complex and very involved with respect to the property’s valuation, its marketing, showing the listing, dealing with inquiries, and managing negotiations, thus allowing you to focus on your core business activities.
In brief, working with an experienced commercial real estate broker can streamline the selling process, reduce stress, and potentially yield a better financial outcome.
If you decide to proceed with using a commercial real estate broker to maximize the sale price of you commercial property, here are a few thoughts on how to find the right broker to handle the sale:
1. specialization: does the broker specialize in commercial real estate in Toronto and have experience with properties similar to yours?
2. reputation: does the broker have a good reputation based on online reviews, references, and conversations you’ve had with other commercial property owners?
3. track record: what is the broker’s past performance, especially with your asset type (e.g., industrial building), and does he (or she) have a track record of achieving top sales prices?
4. local market knowledge: does the broker have extensive knowledge of the Toronto commercial real estate market, including current trends, what works to ensure that the desired sales price is achieved, and who exactly are the potential buyers?
5. marketing plan: what marketing strategy and tactics will be employed, including signage, online promotion, and targeted outreach?
6. communication: does the broker not only communicate clearly and effectively, but does he (or she) regularly keep you in the loop and is available for check-ins to discuss your requirements?
7. fees and terms: what is the fee structure, length, and terms of the listing agreement?
8. interview multiple brokers: have you had the chance to interview several commercial real estate brokers to compare them in terms of expertise and approach, to select the one that best aligns with your goals?
In my opinion, reflecting on each of these questions will help you find a broker who will effectively market your commercial property and maximize your sale price.