Whether to sell or lease your commercial real estate property is a decision that should be made on a case-by-case basis. There are a number of factors to consider, including your financial goals, the current market conditions, and the type of property you own.
Here are some of the things to think about when deciding whether to sell or lease your commercial real estate property:
- Your financial goals: What are your financial goals for the property? Are you looking to generate immediate income by selling the property, or are you looking to build long-term wealth by leasing the property?
- The current market conditions: The current market conditions will also play a role in your decision. If the market is hot and there is a lot of demand for commercial real estate, you may be able to get a good price for your property if you sell. However, if the market is slow and there is not a lot of demand, you may be better off leasing your property.
- The type of property you own: The type of commercial real estate property you own will also affect your decision. Some types of properties, such as office buildings and retail centers, are more desirable to tenants and may be easier to lease. Other types of properties, such as industrial buildings and warehouses, may be more difficult to lease.
If you are unsure whether to sell or lease your commercial real estate property, it is a good idea to consult with a qualified commercial real estate agent. They can help you assess the current market conditions and make a recommendation that is in your best interests.
Here are some of the pros and cons of selling your commercial real estate property:
- You can generate immediate income by selling the property.
- You can avoid the hassle of managing the property.
- You can reduce your liability exposure.
- You may have to pay capital gains taxes on the sale of the property.
- You may lose out on potential future appreciation of the property.
- You may have difficulty finding a buyer if the market is slow.
Here are some of the pros and cons of leasing your commercial real estate property:
- You can generate a steady stream of income from the rent.
- You can appreciate the value over time.
- You can avoid the hassle of selling the property.
- You will need to manage the property and deal with tenants.
- You may have to pay for repairs and maintenance.
- You may be liable for injuries that occur on the property.
Ultimately, the decision of whether to sell or lease your commercial real estate property is a personal one. There is no right or wrong answer, and the best decision for you will depend on your individual circumstances.
If you are interested in a free broker opinion of value or just learning more about investing in commercial real estate in Maryland, Virginia, or Washington DC, please contact us. Avenue Real Estate is a leading full service commercial brokerage in the Baltimore and Washington DC areas and we would love to help you explore your options and make informed decisions about commercial real estate investments.