Selling a commercial property with a sitting tenant: opportunity or obstacle?

Two types of buyers

When you put a tenanted property on the market, you effectively encounter two groups of buyers. The first group are investors: they specifically want a tenant, as this provides an immediate return. The second group are owner-occupiers: they want to use the building themselves and see a tenant as an obstacle. Which group you appeal to determines your sales strategy and your price.

For the investor: a tenant is worth their weight in gold

A good tenant with a long-term contract demonstrably increases the value. The valuation is then calculated via the gross initial yield: annual rent ÷ GIY = value. Important factors for a high valuation:

  • Contract term. A contract with a solid tenant that has 7 years remaining is worth a lot.
  • Indexation. Annual indexation based on CPI is standard and desirable.
  • Security deposit. A bank guarantee of 3 months or more gives the buyer peace of mind.
  • Tenant credit rating. A tenant with good annual accounts carries more weight than an unknown start-up.
  • Maintenance distribution. A tenant who handles internal maintenance saves the owner money and increases the net return.

For the owner-occupier: a tenant is a headache

An entrepreneur who wants to occupy the building themselves sees a tenant as a problem. They must wait until the contract expires or buy out the tenant. The law is clear: sale does not break a lease (*koop breekt geen huur*). The buyer simply takes over the existing contract.

For a sale to an owner-occupier, the following applies: the shorter the remaining term, the better. A tenant leaving within 6 months is usually not a problem; a tenant with 5 years remaining is.

The buyout: how do you approach it?

Suppose you want to sell to an owner-occupier, but the tenant still has a three-year contract. In that case, you can buy out the tenant. The common guide price is six to nine months' rent as compensation. For commercial tenants (non-retail), there is no statutory compensation — everything is negotiated.

Start that conversation early and professionally. The tenant knows they are in a strong position, but also knows that maintaining a good relationship usually pays off. A termination agreement recorded by a notary protects both parties.

Practical pitfalls

The most important legal point: notify your tenant of the sale well in advance. In some cases, they have a right of first refusal (especially with 290-business space). If you ignore this, the sale can be annulled afterwards. A notary familiar with commercial real estate will point this out, but above all, stay alert yourself.

A second pitfall: do not talk to the tenant and buyer simultaneously without a structured plan. The tenant can influence the buyer (positively or negatively), and you will lose control of the negotiation.

Conclusion

A tenant is no reason not to sell, but it is a reason to choose your strategy carefully. Want to know quickly what a tenanted property is worth in your situation? Request a no-obligation offer — we buy both tenanted and vacant properties directly.