Quick answer
Selling a commercial building takes more preparation than selling a house. Buyers review the rent roll and leases, income and expenses, the building's condition, zoning, title, and environmental history before they close. You can list with a commercial broker, sell off-market, or accept a direct cash offer, then plan the move-out around your closing date.
In this guide
- How selling a commercial building works
- What buyers look at in commercial property due diligence
- How to prepare a commercial building for sale
- Ways to sell commercial property
- Taxes, contracts, and who to call
- Moving out of a commercial building
- Sell commercial property and get a complimentary move
- Frequently asked questions
How selling a commercial building works
An office, a storefront, a warehouse, a restaurant building, a mixed-use property: each one sells on what it can be used for and what it earns. The buyer is an investor or a business owner, and both will study the property much harder than a typical home buyer would.
Most commercial sales follow the same path. You and the buyer agree on price and terms, sign a purchase contract, and the buyer gets a set period to inspect the property and review your records. That period is called due diligence. If the buyer is satisfied, and any loan is approved, the sale closes.
The more you can hand over on day one, the shorter and smoother that middle stretch is. This article is general information, not legal or tax advice.
What buyers look at in commercial property due diligence
| Item | What the buyer wants to know |
|---|---|
| Rent roll and leases | Who the tenants are, what they pay, when leases end, renewal options, and who pays taxes, insurance, and maintenance |
| Income and expenses | Several years of operating statements, tax bills, insurance, and utility costs |
| Building condition | Roof, structure, heating and cooling, electrical, plumbing, parking lot, and accessibility |
| Zoning | Whether the current use is permitted, and whether the buyer's planned use will be |
| Environmental history | Past uses of the site that could have left contamination |
| Title and survey | Liens, easements, boundary lines, and access |
| Contracts | Service agreements, warranties, and anything else that transfers with the building |
The environmental question
Many buyers order a Phase I environmental site assessment, and a lender may require one as part of its environmental review before financing the purchase. A consultant reviews records and past uses of the property, interviews people who know it, and walks the site looking for signs of contamination. According to the EPA, a Phase I does not involve collecting samples for chemical analysis, though some states may require more. If the report raises a concern, testing may follow. If you already have an older report, find it.
How to prepare a commercial building for sale
- Build the file. Leases, rent roll, operating statements, tax and insurance bills, surveys, permits, certificates of occupancy, and any past inspection or environmental reports
- Confirm the basics. Check the zoning, the legal description, and whether any permits were left open
- Decide on occupancy. If your own business is in the building, decide whether you will move out before closing, or ask to stay on as a tenant of the new owner
- Sort out what stays. Fixtures normally stay with the building. Equipment, furniture, and inventory normally do not. Spell it out in the contract
- Weigh repairs carefully. A roof or parking lot repair may pay for itself on the open market, or the buyer may prefer a lower price and their own contractor
Selling a commercial building? Sell to Riv Buys Properties and your move with Allpoints is complimentary.
Ways to sell commercial property
- List with a commercial broker. The broker markets the building to investors and business owners. This reaches the most buyers and can bring the highest price, though commercial listings can take a long time to sell and close
- Sell off-market. A tenant, a neighboring owner, or an investor you already know may want the building without a public listing
- Sell at auction. A set sale date, with less control over the final price
- Sell directly to a commercial real estate cash buyer. One buyer, as-is condition, no lender, and a closing date you choose
Be honest with yourself about the trade-off. A listing can bring a higher price, especially for a leased building in good condition. A cash offer may come in below a potential retail sale price. What you get in exchange is no repair bill, no agent commission, no financing delay, and a closing date you control. For a vacant building that costs money every month, or an owner who is retiring and wants a clean finish, that certainty has real value.
Taxes, contracts, and who to call
A commercial sale has legal and tax consequences that depend on your situation, how the property is owned, and your state.
- A real estate attorney to review the purchase contract, leases, and closing documents. Some states require an attorney at closing
- A CPA to explain how the sale will be taxed before you agree to a price and structure
- Your lender, if there is a loan on the building, to get payoff figures and ask about any prepayment terms
Have those conversations before you sign, not after.
Moving out of a commercial building
If your business occupies the space, the sale comes with a move, and the contract will set a hard date for it. Start planning the day you accept an offer.
- Inventory everything: furniture, equipment, files, stock, signage, and what is in storage rooms
- Decide what moves, what gets sold, and what gets hauled away. Selling a building is a good time to shed what the business no longer uses
- Plan the technology. Phones, internet, servers, and point-of-sale systems need lead time at the new location
- Schedule around your customers. Commercial moves are commonly scheduled on nights and weekends to limit downtime
- Leave the space as the contract requires, whether that is broom-clean or with specific items in place
Allpoints Moving Services handles commercial and office moving, packing, furniture disassembly and assembly, and loading and unloading. We are family-owned, licensed and insured, in business since 1999, and we move customers nationwide. Our office move checklist is a good place to start, and the moving checklist covers a household move if you are relocating too.
Sell commercial property and get a complimentary move
Allpoints partners with Riv Buys Properties, a family-owned cash property buyer. They buy commercial property, apartment buildings, multi-family properties, houses, and land, and they evaluate properties anywhere in the country.
- A written cash offer within 24 hours, with no obligation
- Close in as little as 7 days, or on the date you choose
- No fees, no agent commissions, and no repairs. They buy as-is
- Sell your property to Riv Buys Properties and your move with Allpoints is complimentary, packing aids included
Ask either team for details on the free move offer, or request a free moving quote for the move alone.
Key takeaways
- Commercial buyers verify everything. A complete file of leases, financials, and reports speeds up the sale
- Expect questions about zoning, title, building condition, and the environmental history of the site
- A broker listing can bring a higher price. A cash sale trades some price for speed and a firm date
- Talk to a real estate attorney and a CPA before you sign a contract
- If your business is in the building, start planning the move the day you accept an offer
