As an owner, the goal is to have the property organized, presentable, and financially easy for a buyer to understand before it goes to market.

PREPARING TO SELL A COMMERCIAL OR MULTIFAMILY PROPERTY 

1. GET THE FINANCIAL INFORMATION ORGANIZED

• Current rent roll and tenant list
• Copies of leases, renewals and amendments
• Current operating expenses
• Property taxes, insurance and utilities
• Repair and maintenance history
• CAM/additional-rent reconciliations for commercial properties
• Recent income and expense statements

2. REVIEW ALL LEASES
Know each tenant's rent, lease expiry, renewal options, deposits, rent increases and outstanding issues. Resolve missing documents or unclear lease terms before buyers begin due diligence.

3. TAKE CARE OF THE PROPERTY

Complete important repairs, clean common areas, improve curb appeal and deal with obvious deferred maintenance. You don't necessarily need to renovate—the objective is to show that the property has been properly maintained.

4. PREPARE THE PROPERTY DOCUMENTS
Have surveys/site plans, environmental reports, building plans, permits, warranties, service contracts, major repair records and other available property information organized.

5. IDENTIFY ISSUES BEFORE THE BUYER DOES
Outstanding repairs, tenant disputes, vacancies, environmental concerns, unauthorized improvements or inconsistent financial records can complicate a transaction. Addressing them early can make due diligence smoother.

6. UNDERSTAND THE PROPERTY'S VALUE
For an investment property, buyers will focus heavily on NOI, lease terms, vacancy, operating expenses, location and future income potential. Multifamily buyers will also examine rents, unit mix, building condition and opportunities or constraints affecting future income.

7. PLAN THE SALE BEFORE LISTING
Work with your commercial Realtor, accountant and lawyer to consider timing, ownership structure, financing/discharge issues, tax implications and the information that should be prepared for prospective buyers.

THE PROPERTY MANAGEMENT ADVANTAGE

Good preparation for a sale actually begins well before the property is listed. Proper lease administration, accurate financial reporting, preventative maintenance and organized property records can make the asset easier for a prospective buyer to evaluate.

“I help owners manage their properties with the long-term picture in mind—from day-to-day operations and leasing to preparing the asset for an eventual sale.”