As a commercial real estate owner, there may come a time when you want to change the landscape for your portfolio and perhaps sell one of your properties so you can pivot to different strategies as needed. The question you may have, though, is when the most advantageous time to make such a move is, and what that could mean for you.
Of course, there is no one-size-fits-all answer to that question because every owner, every portfolio and every individual property is different. Origin Investments noted that if this is something you're even thinking about, you have to dig into the data and consider a lot of potential impacts of selling a site.
Among the many things you will need to consider here are the possible future returns you'll get from continuing to own the property versus the likely sales price based on current market forces. Would you be able to find a buyer? Multiple would-be bidders? What kind of return on investment are you expecting?
This is about "opportunity cost," and knowing the right time to cash out on a property is something you'll have to get a feel for. However, one of the hidden costs of selling, so to speak, is the potential tax implications of a major cash windfall, which you certainly have to factor into your decision-making.
Depending on the kind of commercial property you own, you will also want to consider the time of year of such a sale, according to real estate expert Ronan Remandaban, writing for LinkedIn. For instance, if you own a residential property that you rent to tenants — for instance, a standalone home or duplex — there might be certain months when selling will fetch better prices than others. You will, of course, also want to consider if you're in a downtime for the broader commercial real estate market, or if properties like yours are subject to high demand.
Any time you're thinking of selling a commercial property, or buying one, you need all the expert guidance you can get. At Ray White Surfers Paradise, we know all about the ins and outs of the local market and can help you make the right decision at the right time. Get in touch with us today to learn more about what we can do for you.
Exploring the Benefits of Net Leases in the Realm of Commercial Assets In the dynamic and ever-evolving realm of commercial real estate investments, net lease properties have emerged as an enticing option, captivating commercial investors with their unique financial structures. Net lease agreements empower tenants to participate in the financial … Read more
After working together for almost a decade, commercial real estate team Jared Doyle and Jack Gwyn have taken their business to the next level, opening RWC Gateway.