Top 5 Reasons Why People Sell Their Commercial Property Fast

The process of selling a commercial property is becoming longer and more drawn out. Part of the reason is that in the last 12-18 months, commercial property solicitors have had a significant rise in transactions. More and more property owners are opting to sell their premises. But, selling your commercial property doesn’t have to be time consuming and slow. There are ways to sell your property fast and get the cash in your hands as quickly as possible. Here are the main reasons why commercial property owners up and down the country are choosing to take the quickest route to making a sale.

In many cases, business owners who own their own property, have little liquidity, but need cash to invest in the business and encourage growth, can’t wait months to seize the opportunity, so they need to act fast. Through the use of sale and leaseback schemes, commercial property owners get quick access to cash they can invest in the business immediately and they can offset the leasing costs as an operating expense, which gives them better tax benefits.

The longer a property remains on the market without interest, the less money the owner can expect to get. Because it is a buyers’ market, and properties are staying in the market for longer, buyers are more likely to offer, and owners are more likely to have to lower their price. A quick cash sale can deliver you a fair price for the property and certainly mitigates the risk of dropping the price after a property have been on the market for months, or even years, and losing out on both a realistic price and the value the cash could have generated for the business in that time.

When a long-term lease on the property is ending, commercial property owners face the risk of holding a vacant property. Many commercial property owners choose to sell their property quickly as the lease ends to avoid taking over the risks associated with holding a vacant property. This is also a key time to sell as vacancy will add value to some properties.

Business owners who have seen a sudden depletion in earning potential. An economic downturn or loss of business can suddenly leave business owners with an abundance of unnecessary space. The longer the space sits empty, the longer the owner is rates, and a mortgage on empty space and not utilizing your equity – the more money is being lost.

Similarly, when you reach the maximum earning potential you can get out of this property, it is time to sell it fast and move to a better suited, maybe bigger space. The longer you stay in a property where your business can’t expand, the more money you could be losing in business which you don’t currently have the capacity for.

Corporate sharks are always looking for undervalued real estate on the books of small businesses. They then buy the business and flip the property for a tidy profit, as well as absorbing the smaller business. For some business owners, once they are on the radar of these corporate raiders, selling their commercial property fast and tying it up in a long-term leaseback option is enough of a deterrent to prevent the corporate takeover.