Bob - Last week we talked about the improving commercial retail market. Are more shopping center owners looking at selling their properties as the retail market shows continued signs of improvement?
Walt - Bob, good morning, as more owners are considering the question “is now a good time to sell”, what is really needed is more buyers or investors asking the question “are we ready to take on an acquisition or purchase a property?” And how do we purchase the property in order to get favorable financing?
Bob - So what you’re saying is, wanting to sell a property is one thing, but the most important part is having buyers wanting to invest?
Think about worst-case scenarios, for example, what if a tenant leaves or to keep and retain tenants, rates have to be reduced?
The next point is “cash is still king” and one strategy is to purchase the property with cash and work out the financing details after the purchase. It provides more leverage on the purchase and more time to find the best financing without having to meet financing contingency dates in a purchase contract.
If you are seeking financing, be proactive and define what terms you want from the lender and get all information as soon as possible. Over communicate, get all lease details, read the leases and be able to respond quickly to the lender’s request for documents and information.
Lastly, be intuitive and follow your instincts. If something creates an uneasy feeling, act on it, dig into what the issue is and decide if the property is worth pursuing.
You can control the process when purchasing commercial real estate. Develop the plan and stick to it.
It’s a great time to consider investing in commercial real estate and at Sperry Van Ness we have the knowledge and experience that leads to a successful transaction.
Bob - Walt, how can people get a hold of you to talk about commercial real estate?
Walt - Thanks Bob, give me a call, Walt Arnold at Sperry Van Ness my direct line is 256-1255 our website is waltarnold.com. Sperry Van Ness is a full-service commercial real estate company with experience in working with buyers, sellers, landlords and tenants in commercial real estate sales, leasing, investments and management. Bob thanks for the time today, have a great week and we’ll talk next Monday.