Acquisitions & Dispositions

Evaluating the sale or purchase of real property is one of the most rewarding and most challenging undertakings that most business people will encounter during their career.  Building ownership can be rewarding in countless ways, but it is a job that requires many different skill sets.

As a CCIM I am uniquely prepared to assist companies with the decision making process.  Key factors to consider include:

  • Location.  Yes it does matter.  You want to be close to your labor pool, customers or your vendors and suppliers.  Depending on your business though this can mean many things.  Are you an architectural firm that specializes in edgy renovations?  Renovating an older building in a transitional neighborhood may be your best advertising.
  • Condition:  Are you building new, rehabilitating an older structure or buying a building that seems to exactly suit your needs?  Issues from environmental conditions, proximity to flood zones or functional obsolescence need to be reviewed and verified.
  • Allowable Use:  If you are an accountant looking for office space or a manufacturer looking for industrial space the local government will most likely have a say as to where and how you can conduct your business.  Never assume that just because the previous occupant was using the property in that manner means that you will be able to as well.  Always check the zoning.
  • Access:  Can your customers see you from the street?  Do you have adequate parking?  Is the building in compliance with the Americans with Disabilities Act?  Building codes change over time.  Make certain that the property that you are buying meets the current codes for occupancy.
  • Financing:  Do the numbers work?  Are the project rents consistent with market conditions?  Will the NOI cover the DCR required by your lender?  When is the best time to sell the asset?
  • Management:  Are you capable of handling multiple tenants and their needs?  Are you experienced in working with the trades?  Structuring and reviewing multiple bids for the maintenance and repair work?

So it is time to sell.  What is the asset worth?  Are market conditions favorable?  Is financing available?  Can your asset be better positioned to enhance value?  Selling so that you maximize your return is as time intensive and challenging as the acquisition.  Consulting with a knowledgeable broker is a good first step before you announce that your property is “on the market”.