Commercial Property Disposition Guide — Sell Smart

Before going to market, understand exactly what you have and what the market will pay for it. A thorough broker opinion of value (BOV) should include: current NOI analysis, cap rate benchmarking against recent comps, physical condition assessment, lease rollover analysis, and identification of value-add potential that a buyer might pay for.

Positioning is as important as pricing. A vacant creative office building in Venice tells a different story to an owner-user buyer than to a value-add investor. Your broker should identify the optimal buyer profile and tailor the marketing accordingly.

Westside commercial properties sell through relationships as much as through listings. Your broker's network — private equity contacts, 1031 exchange buyers, local investors, owner-users in the market — is the primary distribution channel.

Marketing materials should include: executive summary, rent roll, operating statements (T-12 and T-3), floor plans, site plan, zoning summary, and a market overview positioning the asset within its submarket. Professional photography is non-negotiable.

Managing multiple offers is an art. The highest price isn't always the best deal — certainty of close, timeline, contingency structure, and financing strength all matter. A 1031 buyer with a hard deadline may be more motivated than a private equity fund with flexible timing.

Pat's approach: create a structured bid process with a clear timeline. First-round offers, best-and-final, and a defined decision framework that keeps buyers competing while maintaining your leverage.

Once under contract, manage the due diligence period carefully. Have all documents organized in a virtual data room before offers come in — delays during DD kill deals. Key items: title report, survey, environmental (Phase I), roof and structural reports, tenant estoppels, and service contracts.

Coordinate with your tax advisor on 1031 exchange timing if applicable. The 45-day identification period and 180-day closing deadline are absolute — build your closing timeline backward from these constraints.