Selling Commercial Property: Optimise Your Sales Result

The difference of a few percent

In the world of commercial real estate, small percentages result in large sums. Selling a property worth €1,000,000 for 3 percent more means an extra €30,000 in your pocket. At €5,000,000, that difference is €150,000. It pays to think about optimisation.

In this article, I share the strategies and tactics that make the difference between a reasonable sale and an excellent sale. Not the obvious tips you read everywhere, but the insights that add real value.

Understanding value drivers

The first step towards optimisation is understanding what makes your property valuable – or what doesn't.

Factors that increase value include a long-term lease agreement with a creditworthy tenant. This offers buyers security and lowers their risk. Good maintenance is equally valuable – a property that has seen investment in recent years radiates confidence. A favourable energy label is becoming increasingly important; sustainability is no longer a 'nice-to-have' but a value driver. And a flexible layout makes the property attractive to a broader group of buyers.

Factors that depress value are the mirror image. Vacancy is the biggest value killer – it creates uncertainty and requires investment from the buyer to find a new tenant. Overdue maintenance raises questions: what else is wrong that I cannot see? A poor energy label can mean the buyer must invest heavily to meet legal requirements. And a very specific fit-out – perfect for the current user but for no one else – limits the market.

Quick wins for sale

There are investments you can make relatively quickly that more than pay for themselves.

The very first impression counts enormously. A well-maintained facade, a tidy site, clear signage – these are details buyers register, consciously or unconsciously. An investment of €5,000 to €10,000 in painting and grounds maintenance can make a €15,000 to €30,000 difference in the sale price.

Professional cleaning is another quick win. A gleaming floor, clean windows, tidy spaces – it costs a few thousand euros and makes a world of difference in how the property is perceived.

And minor repairs: the leaking tap, the broken lamp, the crack in the wall. They seem trivial, but they raise questions for buyers. If this hasn't been repaired, what else has been neglected?

Strategic improvements

Some investments require more consideration but can add significant value.

Improving the energy label is one such investment. The costs can run into tens of thousands of euros, but the increase in value is often higher. A jump from label C to label A can add 5 to 10 percent in value. Furthermore, future requirements will only become stricter; a property that already meets future standards is more attractive to buyers.

Asbestos removal is another example. The presence of asbestos is a dealbreaker for many buyers or leads to substantial price discounts. Having it professionally removed before the sale takes away that uncertainty and can turn out to be more profitable net-net.

But be critical. Not every investment pays for itself. A complete renovation of an outdated building can cost more than it yields. Let a professional calculate the business case before you make major expenditures.

Optimising timing

When you sell affects what you get.

Favourable moments for sale are periods shortly after the renewal of a lease (maximum security), low interest rates (more buyers can secure financing), strong economic cycles (more demand), and scarcity in your segment (less competition).

Less favourable moments are the opposite: expiring leases, rising interest rates, economic uncertainty, oversupply in the market.

You cannot control all timing, but you can be alert to the signals. Sometimes waiting half a year is the difference between a mediocre sale and an excellent one.

Winning the negotiation

The negotiation is where everything comes together. Here, your preparation determines whether you leave money on the table or get the maximum out of it.

Create a strong position. Ensure you have all information ready – valuations, documents, supporting evidence. If a buyer asks questions, you must be able to answer immediately. Uncertainty is weakness.

Ensure there are multiple interested parties if possible. Nothing drives up the price as effectively as competition between buyers. A buyer who knows there are others is more willing to bite.

Show no time pressure, even if it exists. A seller in a hurry is a seller who makes concessions. Let the negotiation proceed calmly, even if you would prefer to wrap it up quickly.

And be prepared to walk away. The most powerful position in any negotiation is the willingness not to do a deal. If you know you can move forward without this buyer, you negotiate differently.

The end result

Optimisation isn't magic – it is systematically working on every aspect of your sale. From the first impression to the final negotiation, every detail counts. The difference between good and excellent can amount to tens of thousands of euros.

Want to know more? Read about selling commercial property or request advice.