While Capitalization Rates are at all time lows, and returns on fixed income products offer little return to investors, there truly has never been a better time to sell long term leased commercial property.
The buyer profile for these types of properties can vary from small individual investors to large institutional type investors. You want to make sure that you have positioned your property correctly from a lease “terms” standpoint so as to maximize the value of the property when you go to market.
We have worked with tenant’s to extend their leases on these type properties in order to enable the seller to achieve a lower cap rate, and thus a higher price. The keys’ to value on these type of properties are the NOI amount, length of lease, terms of the lease, and the quality/creditworthiness of the Tenant.
If you have one of these type of properties, it pays dividends to involve a knowledgeable Broker that can help you prepare and position the property for an offering to the investment market.