The subject of when to sell your property based on land value frequently arises in the dynamic world of retail real estate. It's a challenging equation that combines a thorough examination of the property's intrinsic value with knowledge of current market trends.
Think on your retail property's highest and best usage first. Is it currently optimized, or is there room for improvement? Where is the nearest Metro stop? Are there Density Bonuses? This potential could be realized by converting a single-tenant net lease property into a mixed-use (apartments over retail) development or a brand-new, energetic strip center, by repurposing a piece of vacant land into a bustling shopping center, or by converting a gas station into a masterful mixed-use (apartments over retail) design.
Timing is crucial. Your lease's expiration should, ideally, coincide with the listing of your property for sale (with no additional tenant lease options). While some investors might be concerned about an impending lease expiration, developers may be able to take advantage of the situation. When the lease expires, developers will have a blank slate on which to plan and carry out their vision, which will improve the appeal of your property. In order to give time for underwriting the value, exclusive marketing to developers, and giving a developer time to obtain their permits and entitlements from the local government authority, I advise starting this process 6 months to 2 years before the lease expires.
What you hope to achieve when you sell or exchange the retail property will determine how to proceed. This strategic decision-making calls for thorough market research, in-depth comprehension, and imaginative planning. And this is where I step in, using cutting-edge AI algorithms and years of experience to provide guidance unique to your circumstance.
Now, let's turn this insight into action.
For retail property owners seeking to optimize their investments, I offer an invaluable service grounded in transparency, integrity, and a proven track record. My expert advice guides you in making the most strategic decision, whether that's to hold, to sell or to exchange, maximizing your property's land value. If you're pondering over the right time to sell your retail property, let's collaborate to create a strategy that suits your individual needs.