When property owners in New York consider selling non-residential properties, they have a few chief goals. They want to generate the most profit possible, they want their deals to happen quickly, and finally, they do not want the transactions to come with many conditions. However, the commercial real estate sales process is not straightforward, as multiple types of buyers with different pricing expectations exist. Two of these buyers are developers and investors.
A developer usually targets a property on which he or she can either build a brand-new building, or demo and rebuild a building. A developer’s pricing is based on what he or she thinks a newly built building will be valued at when it comes to the sale price or the rent price. In general, this type of buyer wants to purchase properties at the lowest prices possible.
An investor, on the other hand, is often willing to pay prices that are low-medium if not low. However, an investor is usually more willing to pay for a property if it does not have a lot of risk tied to it. Both occupied and vacant properties can attract investors, although, if a property is vacant, an investor will not pursue it until he or she has factored in the expense of turning it into an income-generating property.
Selling commercial properties in New York can be just as complicated as it is exhilarating for the modern property owner. For this reason, it is a wise idea to consult an attorney prior to commencing a commercial real estate transaction. During a transaction, the attorney will provide the seller with the guidance he or she needs to seal the deal in the most profitable manner possible while also making sure that the seller’s rights are protected.