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August 21, 2019

Resist the Rush

We see it too often. In a rush to get to the finish line, brokers list properties at price points much lower than what those properties could return with a well targeted marketing effort. When the seller’s finances allow it, we like to take the time to make that effort—and earn them a better return.

When Eric Szerlag and the Thomas Duke Company’s Westside Team were hired to sell the Mill Valley Retail Center in Milford, we listed it at a price considered above market—because we could see its underlying value. Our client gave us the time do the marketing that would deliver a higher price than the property’s face value.

We knew it wouldn’t take long. Though the Mill Valley Center was 30-plus percent vacant, downtown Milford as a whole boasts a very low vacancy rate. With marketing customized to an area we know well, we filled one vacancy quickly. That immediately boosted the center’s net operating income. At the same time, we were settling on terms with three other tenants. One of them took a large former restaurant space.

With these lease deals in progress, we formally put the property up for sale. The listing price, initially considered high, now made sense.

We received 15 offers in less than a month and chose a purchaser we knew could deliver. We closed on an all-cash sale at slightly more than $4 million—far more than the property would have delivered without the new leases that raised its annual net operating income by roughly $80,000. All of this in three months. The new owner hired us to continue leasing responsibility for the center. With our marketing, the center is now at 100 percent occupancy.

Putting in the effort to improve the property’s marketing-for-lease paid off handsomely for this seller. Obviously there are times when a seller needs a quick turnaround. But if possible, resisting a rush to the finish is worth the wait.

Whatever your time frame, Eric Szerlag and the Westside Team at the Thomas Duke Company would welcome a conversation about bringing you the best price for your property. Call them today.

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