Selling specialty commercial properties requires a strategic approach that accounts for their unique nature. From architecturally distinct office buildings to historic churches or even specialized industrial facilities, these specialty commercial properties require more than a standard approach to find the right buyer.
These specialized assets have unique values and target niche buyer pools compared to conventional commercial buildings. Successfully transacting these properties poses unique challenges but also presents lucrative opportunities. This guide covers key considerations and recommendations to optimize outcomes when selling your prized specialty asset.
This article walks you through each step of the process, including:
- What Is a Specialty Commercial Property?
- Selling Challenges for Specialty Commercial Properties
- Hiring a Professional to Sell Your Properties
- Preparing Your Property for Sale
- Navigating the Sales Process
What Is a Specialty Commercial Property?
Specialty commercial properties encompass a range of distinctive and uncommon asset types that stand out from conventional real estate due to their specialized functionality, cultural significance, or architectural features. This category could include a century-old building converted into modern office spaces, a uniquely designed shopping center, a historic church, or a specialized manufacturing facility with specific amenities.
Read Next: Zoning Districts in Austin, TX: What They Are & How They Affect Your Property
While their unique attributes increase desirability and value for some buyers, specialty properties also come with niche market challenges. Limited buyer pools, complex valuations, and increased due diligence requirements add transaction complexities. However, the right approach can maximize opportunities.
Selling Challenges for Specialty Commercial Properties
Selling specialty commercial properties involves addressing specific challenges not present with more typical commercial real estate like office buildings or retail spaces.
Limited Buyer Pool
The pool of potential buyers for specialty commercial properties is significantly smaller compared to more common commercial buildings. Their specialized nature and operations limit interest to buyers within niche industries like entertainment, religion, sports, museums, and recreation. Mass marketing to all commercial real estate investors would be inefficient. Owners or their representatives must tap into specialized networks and target marketed outreach to viable buyers.
Honing in on specialized networks such as industry associations, broker-to-broker relationships, or targeted digital platforms is paramount to marketing these properties successfully.
Read Next: Your Guide to Commercial Real Estate Investment Language and Lingo [Glossary, Definitions]
Pricing Complexities
Properly pricing specialty commercial real estate is complex. Valuation relies on more than standard metrics like location, square footage, and market sales comparisons. Specialized facilities require appraising the value of customized build-outs, proprietary equipment, revenue streams, branding, and other intangible assets. Complex appraisals are required to determine fair market value. Sellers also have more flexibility in applying premiums based on prestige, uniqueness, and inherent value to specialized operators.
Just because one buyer sees no value in the property doesn’t mean it lacks worth. It could be the perfect fit and a high-value asset for the right operator.
Marketing Challenges
Specialty commercial properties require marketing strategies specifically tailored to their unique nature and limited buyer pool. Conventional commercial property marketing tactics may not be adequate. Targeted outreach campaigns in industry-specific channels are needed to reach qualified buyers. Materials must convey the distinctiveness and intrinsic value of specialized amenities, operations, and revenue streams. Sellers must clearly communicate how customized build-outs contribute value for specific purposes to attract qualified buyers who appreciate these attributes.
The right broker can transform the process from searching for a needle in a haystack to executing a focused, strategic approach.
Hiring a Professional to Sell Your Specialty Commercial Properties
Engaging a professional commercial real estate broker with expertise in specialty properties can be invaluable when selling unique properties. Their industry experience and networks provide advantages compared to selling privately or through a typical commercial agent.
Expert Valuation
A specialty commercial real estate professional has the experience to accurately assess market value for these highly customized spaces. They understand how to appraise specialized build-outs, proprietary equipment, branding, revenue projections, and other factors that affect pricing for specialized facilities beyond basic square footage and location. Their expertise results in more accurate pricing and marketing strategies that are directly aligned with the property’s unique value.
Read Next: How Do High Interest Rates Affect Land Values?
Targeted Marketing Strategies
Experienced professionals can create customized marketing plans specifically designed to highlight the distinctive attributes that matter most to viable buyers in niche industries. Materials are tailored to strategically convey the amenities, operations, and intrinsic value that make the property uniquely appealing to qualified buyers. Industry-specific channels and networks are leveraged to reach buyers who will appreciate the property’s particular value.
Networking and Contacts
Extensive professional networks give brokers access to contacts and relationships with relevant specialty buyers. They know how to tap into industry groups to connect with entertainment, sports, religious, museum, or recreation buyers specifically looking for these types of unique commercial spaces. Their relationships and connections facilitate exposure to the right buyers.
How to Hire the Right Person to Sell Your Specialty Property
Choosing the right commercial real estate broker to sell your specialized property requires careful consideration to maximize your transaction success. Their experience and capabilities in specialty markets are key factors to evaluate.
Relevant Experience
Look for professionals with experience specifically in the niche specialty market your unique property occupies – such as historic buildings, churches, custom-designed retail, or specialized industrial facilities. Each specialty area has distinct trends, valuations, buyer personas, and marketing nuances. Experts already immersed in your property’s niche can navigate the intricacies more effectively.
Proven Track Record
Thoroughly investigate sales track records to assess their success in selling similar specialty properties. Strong histories of completing transactions for comparable properties provide confidence in their ability to handle the nuances your asset presents. Ask for specific case studies and client references involved in their specialty sales.
Innovative Marketing Expertise
Inquire about their planned approach to marketing your property. Specialized spaces require creative strategies that go beyond traditional listings. Look for innovative digital, networking, and promotional tactics tailored to highlight your property’s distinguishing amenities and features to niche buyers.
Understanding Your Asset
Ensure the professional takes a genuine interest in fully understanding all of your property’s unique details and characteristics. Their ability to recognize and convey the specialty value to the right buyers is critical. Confirm that they have the patience and commitment to appreciate how customized aspects enhance your property’s appeal within your respective niche.
Preparing Your Specialty Property for Sale
After hiring a broker with specialty property experience, you should begin preparing your property for sale. Taking key steps to prepare your specialty commercial property for sale can maximize its appeal to niche buyers and improve transaction outcomes. Strategically enhancing unique aspects, professional staging, and value-adding improvements convey quality and increase buyer confidence.
Strategic Enhancements
Identify and implement selective improvements that spotlight your property’s distinctive amenities and architecture. As an example, for historic buildings, this may involve restoring character-defining design elements. Strategically refreshing unique spaces improves overall aesthetic appeal and highlights specialty features.
Professional Staging and Presentation
Investing in expert staging and high-quality photography and videography elevates presentation. For specialty properties, visuals showing spaces at their best convey value more impactfully than standard listings. Consider virtual property tours or interactive floorplans to provide an immersive experience that brings unique spaces to life digitally.
Value-Adding Improvements
Evaluate opportunities to complete improvements that boost your property’s marketability like modernizing outdated building systems, addressing deferred maintenance, or enhancing accessibility. Obtaining relevant certifications like LEED, National Register of Historic Places, or satisfying key buyer compliance criteria can increase appeal. Targeted upgrades demonstrate commitment to quality and proper maintenance.
Navigating the Sales Process
Successfully selling your unique property often necessitates a tailored sales approach that accounts for specialty considerations. The right real estate professional will guide you through key phases using their experience with niche properties.
Specialized Negotiation Skills
Be prepared for a more complex negotiation process compared to standard commercial real estate. Experts in specialty properties can craft win-win terms that properly reflect the asset’s distinctive value factors while still addressing buyer needs. They understand niche industry trends and catalysts driving buyer interest. Their skills produce equitable pricing.
Legal and Regulatory Knowledge
Properties like historic buildings or culturally significant spaces often have additional legal and regulatory requirements. Ensure your broker has working knowledge of ordinances, historical registrations, landmark statuses, or code exceptions that apply. They should help navigate any compliance needs to avoid transaction hurdles.
Read Next: Why You Should Hire a Land Consultant To Get the Most Value for Your Property
Smooth Transaction Management
A seamless sales transaction process requires diligent management of due diligence, paperwork, and stakeholder coordination. Lean on your professional’s experience with specialty deals to anticipate hiccups and keep the transaction moving efficiently. Their oversight minimizes hassle and frustration for you as the seller.
Conclusion
Selling a specialty commercial property requires working with specialists and navigating a tailored sales process to convey the asset’s unique value. But the rewards can be well worth the effort. Partnering with experienced professionals leverages their expertise and connections to attract buyers who appreciate specialty properties, while a strategic sales approach helps negotiate optimal terms.
With the right strategy in place, selling your prized specialty property can be an exciting endeavor, resulting in finding the perfect new steward.
If you are ready to hire someone to help you sell your specialty property, reach out to one of AQUILA’s commercial real estate investment experts to schedule a free consultation today.
