“Dave has helped me with several commercial real estate projects including selling my office building in Valrico, FL and purchasing my 12,000 square foot warehouse in Charlotte, NC. Dave knows the business better than anybody, that’s why I work with him.”
– Michael Grouse
Michael Grouse is a small business owner and entrepreneur who owned a 3,216 square foot stand-alone office building. Michael had purchased the building as a shell and built out the interior with two office units. One side he utilized for himself and the other he rented out to other businesses. After several years the building was no longer needed by Mr. Grouse’s business, and he leased out his office. After several months both tenants moved out of the building. He decided to sell his building and reallocate his capital to other investments.
Mr. Grouse hired David Kinnard of Kinnard Commercial Real Estate Group to sell his building. He told David the building was empty and costing him money, he said, “sell the building for as much as possible as fast as possible.” The first task for David was to analyze the building and make a price recommendation. David took two approaches; the first was to value the building from the perspective of an owner operator and the second approach was to analyze the property from the perspective of an investor. The results of the analysis showed that owner operated office buildings were in higher demand and commanding a higher price per square foot.
A marketing plan was enacted that utilized a combination of channels to reach the maximum number of potential buyers. Professionals who were leasing similar buildings were called on the phone, next a mailing campaign created, and then space was posted to several commercial multiple listing services. The building was sold quickly for a price the Seller was satisfied with. The building:
- sold in 5.8 months and the average time buildings are on the market is 7.3 months.
- sales price per square foot was $174.15 as compared with the average sales price of similar buildings of $166.84.