Tips For Renting Out Or Selling Your Commercial Property

Perhaps your business is going in a different direction. Or maybe you suddenly have vacant space in your office or warehouse because you've downsized or your tenant has moved in a different direction. But at some point, you, as a business owner or property owner, will be faced with the decision about what to do with empty space. Do you sell your commercial property? Do you lease space?

The first thing you should do is determine how much space you are offering. Know the specifics of your property, including square feet, accessibility, parking, structure of the building and floor plan. You'll also want to examine how much you purchased the property for.

The next step, do some research to determine how much properties around yours are leasing and/or selling for. Find out how these properties compare to yours in terms of property specifics, rental rates, lease agreements, etc. Also find out who handled the sale on their real estate and if there was a property management company involved.

If you're comfortable about handling things from here, you can list your property's availability by putting a “For Sale” or “For Rent” sign out in front of your property. Advertise in your local paper. Contact CraigsList for free real estate advertising. Put the word out with your friends and professional contacts on facebook, linked in, twitter, and in your computer's address book.

If you prefer to have a real estate agent handle things from there, contact an agent or broker who specializes in commercial or industrial properties (whichever is most appropriate). An agent has resources that include clients who are looking for space, access to preferred financing at local banks, and unparalleled market knowledge. Even if you're unsure about whether you want to sell the property, a trusted commercial real estate agent can advise you on the best course to take.

If you choose to handle it yourself, you'll be responsible for meeting with prospective buyers or tenants and showing them your property. This may be time consuming and difficult if you're continuing to manage your business's daily operations. That is another aspect where having a commercial real estate agent is beneficial.

Either way, once you find a tenant or buyer, you'll want to contact a legal professional with experience drafting contracts. It is very important that a contract for leasing or purchasing property is spelled out with every detail necessary so there are no loopholes or errors. It is also important to consult legal advice when drafting a leasing agreement, including expectations and responsibilities of tenants.