The best commercial sales are prepared well before the property hits the market. Buyers pay for certainty. Every question you can answer in advance, and every surprise you can eliminate, supports price and closing speed.
1. Financial package
- Trailing 12-month (T-12) operating statement and two to three prior years.
- Current rent roll.
- CAM reconciliations and expense recovery history.
- Property tax bills and protest history.
- Utility and service contracts.
2. Leases
- Complete lease files with all amendments.
- Lease abstracts summarizing key terms.
- Estoppel readiness: confirm tenants are current and records are accurate.
- Clarify any side agreements.
3. Physical condition
- Address visible deferred maintenance.
- Gather roof, HVAC and paving records and warranties.
- Consider a pre-sale property condition report for larger assets.
4. Title, survey and zoning/use
- Order or locate a current survey.
- Review title for issues that could delay closing.
- Confirm permitted use and any deed restrictions.
5. Environmental
- Locate existing Phase I reports.
- Address known issues before marketing.
6. Tax and structure
- Talk to your CPA about capital gains, depreciation recapture and a potential 1031 exchange. See 1031 exchanges.
- Consider whether a sale-leaseback or seller financing could increase value.
7. Pricing and positioning
- Normalize NOI the way buyers will.
- Identify the most likely buyer pool: owner-users, 1031 buyers, private investors, institutions.
- Tell the upside story with data.
8. Timing
Consider lease rollover, rate changes and capital market conditions. Selling after a lease renewal or rate increase can lift value.
Asset-specific notes
- Self-storage: clean software exports and recent rate increases. See self-storage valuation.
- Strip centers: CAM accuracy and lease rollover. See strip center underwriting.
- Medical: build-out details and tenant licensing.
- Industrial: building specs, environmental and permitted use.
Frequently asked questions
How long does it take to sell commercial property in Houston?
It varies by asset class, price and buyer pool. Preparation shortens timelines.
What is a T-12?
A trailing 12-month operating statement showing income and expenses for the past year.
Should I fix deferred maintenance before selling?
Often yes for visible issues buyers will discount heavily; otherwise price accordingly.
How we help
We prepare, price and market commercial property to the buyers most likely to close. Explore our commercial practice.
Have a deal or question in mind?
Talk it through with Apurva. A 20-minute call is usually enough to know your next step.
