How to Sell Your Commercial Property Fast
When selling a commercial property, it’s important to remember that the commercial market is completely different to the residential market. There are different legalities, demands and market forces between the two markets, so the need for commercial properties could be completely dissimilar to residential.
We all know that there is always a need for houses in the UK, as the country struggles with a continual housing shortage. However, the demand for commercial properties is based on a range of variables, with the main issue being how the UK economy is performing. A low employment figure and high GDP (Gross Domestic Product) situation generally results in an increase in demand for commercial uses to increase production.
The history of the commercial property sector
Since the market crash in 2008, the commercial property sector has been hit significantly, with some regions seeing property values decreasing by nearly 50%.
This has now subsequently led to banks and building societies withdrawing funding from commercial investments and developments, which led to a severe downturn in the sector.
While the economy has picked up since the crash of 2008, the market is still trying to catch up and as a result, returns are nowhere near their peak in 2007-08.
The current market
According to research conducted by The Royal Institution of Chartered Surveyors (RICS), the commercial market is proving resilient and the demand to rent has levelled off for the first time in five years.
The commercial demand for properties varies dependent on sector, so one market may be performing better than another. The retail and office sectors are facing a slump in decline for properties, whereas the demand in the industrial sector remains strong.
Whilst COVID-19 has led to a dip in property sales, there is still positive news for commercial property. According to Cushman Wakefield, demand will increase for commercial properties in city centres – particularly offices and industrial spaces.
So, if you’ve got commercial property to sell, rest assured that there is still demand, and there are several methods you can choose to find a buyer.
How to sell commercial property fast
You may wish to sell your commercial property quickly for a number of reasons. This may be due to financial problems, such as a need to pay off debt, retirement, negative equity or unaffordable commercial business rates.
However, it’s worth noting that selling commercial property is no longer an easy task, as a large number of pension funds have reduced this type of asset class in their client’s portfolios. The best way to sell a commercial property is largely down to your individual needs and requirements, with the following three options available to you.
The longest process of the three, selling your commercial property fast may not be an option with estate agents, as the typical timeframe is between 3-6 months.
You’ll not only need to consider estate agent fees, but solicitor fees, removal costs, and potential capital gains tax, mortgage arrangement fees, and mortgage redemption fees too.
If you choose the estate agent route, you’ll also need to prepare your property ready for prospective buyers to view, and sort out any necessary information buyers would like to know, including planning permissions, details of business rates, and a commercial energy performance certificate.
Whilst you’ll like have a figure in mind you’d like your commercial property to sell for, bear in mind that you may have to reduce this.
If you want to sell commercial property fast, an auction is another method available to you. However, this method does come with similar restrictions to residential auctions. Large auction fees and an uncertainty of a guaranteed sale are just some of the pitfalls of selling this way, and should be considered if you are planning on sell commercial property fast.
Cash house buyer
If you want to receive a guaranteed quick property sale, we at Good Move can help. We can buy your property, whether commercial or residential, for up to 85% of the market value. We come equipped with over 40 years of commercial property surveying experience, an expert legal team, and a property buying service and business model, which retains the highest regard in the surveying industry.
If you want to sell your commercial property fast, or need some advice, feel free to contact the surveying team at Good Move or click below to request a cash offer.