Selling commercial real estate:

These are the special features you should keep in mind.

The sale of a commercial property differs in essential aspects from the sale of a residential property. In particular, the specifications of the respective submarket of the commercial property must be taken into account, as well as building and planning regulations and tax provisions. In principle, it is therefore advisable to engage a specialized RE/MAX commercial broker for the sale of a commercial property, who is well versed in the relevant marketing strategies. Nevertheless, as a seller, you should know the principles of commercial real estate sales.

Man with tablet

From office to train station:

The different markets of commercial real estate.

The term “commercial property” covers such diverse objects as stores and offices, hotels, gas stations and discotheques, but also shopping centers, refrigerated warehouses, train stations and various types of production halls. This list already shows that in a first sales step the respective submarket of your commercial property has to be analyzed in detail. What is the relationship between supply and demand? Which target group of buyers is interested in my type of business?

Pen on a table

Income value:

Rented properties achieve a better price.

In order to set a realistic purchase price for your commercial property, you need to know its value. Unlike with residential properties, professional brokers usually use the capitalized earnings value method for property valuation in this case. The land value and the building income value, i.e. the balance of rental income and management costs, serve as the basis. In general, it is easier to sell rented commercial properties at a higher price than vacant ones. The reason for this is the certainty of being able to calculate regular rental income in the coming years. An exception, of course, is when the buyer wants to use the property himself.

Consulting at the desk

Documents:

You should get these

Already at the first viewing appointment, you should have a comprehensive folder of documents ready, which provides detailed information about the location and condition of your commercial property. This includes:

  • Land register excerpt and development plan
  • Parcel map excerpt
  • Calculations of the usable area
  • Cubature calculation
  • Cadastral extract
  • Maintenance and renovation certificates
  • Statement of operating costs
  • Rental agreements
  • Service charge statements
  • Energy certificate

Our qualified RE/MAX commercial brokers will assist you in obtaining these documents and continue to advise you on how to present your property in an even more positive light.

Consultation

Building Use Ordinance:

How good is your knowledge?

Interested parties often make their purchase decision dependent on planning law conditions. This is understandable, since public building and planning law, the situation under neighboring law and emission protection law, and possibly also contaminated sites in the soil, must be taken into account for any intended changes of use. You should be able to provide the potential buyer with binding information. If you have commissioned a real estate agent, he or she is very familiar with the matter.

Tax law:

Speculation period, business assets and commercial trade.

The proceeds from the sale of your commercial property are subject to income tax. You must therefore declare it on your income tax return and it will be taxed at your personal tax rate. Exception: There are more than ten years between the purchase and sale of the property. If, on the other hand, the commercial property is part of your business assets, this so-called speculation period has no significance. And: If you sell more than three properties within five years, the tax office considers this to be commercial trading – and you have to pay trade tax.