July 12, 2023

Asking Price – Not the Only Element

My client needed a building right away—the kind of challenge I like.

But he needed a light industrial building—the kind of challenge that, in this market, makes me pause.

The demand and pricing for light industrial buildings has soared since the pandemic. Plus, higher interest rates mean the buyer’s dollar doesn’t go as far. Sellers, of course, know this and expect buyers to look past deferred maintenance and property limitations.

But, every seller of every building has a story, and asking price is not the only element of that story. It may not even be the most important element. The sale terms they need, timing they prefer for closing, and how quickly they can vacate the property may be as important as the price in a seller’s choice of buyer.

My client and I looked at a lot of sub-par light industrial listings. Then we found one on Enterprise Drive in Farmington Hills that checked all his boxes. I did some research and learned that the seller would be greatly helped by a flexible closing and move-out date. My client could meet all his terms. Even though the seller might have gotten a higher price from another buyer, the match between his needs and my client’s capabilities won us the sale.

Bottom line: just outbidding the next buyer doesn’t guarantee a sale. Understanding all the dynamics of a sale ensures you’re getting the most for your investment.

I’d like to help you do that. Contact me at (248) 476-3700 or svalli@thomasduke.com.

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