Investment Sales for Sellers and Buyers of Commercial Real Estate
Brightway Commercial is highly experience in representing buyers and sellers of commercial real estate in Nebraska and the Midwest.
Case Study
Buyer Representation on 54,151 SF Office Building
$5,175,000
Nate Ohlrich, CCIM, demonstrated his expertise in buyer representation in Nebraska by successfully representing a regional investment fund in the purchase of a 54,151 square foot office building located at 3509 N Louise Ave, Sioux Falls, SD. The building, a Class A, NNN leased asset, was acquired for $5,175,000, offering an asking 8% cap rate and long-term stability with a Fortune 100 tenant, Allstate Insurance Company.
This strategic acquisition is located in the thriving northwest Sioux Falls area, home to key companies and near major transportation hubs, including the Interstate 29 & 90 interchange and Sioux Falls Regional Airport. The property, which has been occupied by Allstate for the past 15 years, provides a unique investment opportunity with the potential for rent increases upon lease renewal.
Nate Ohlrich’s representation ensured a smooth transaction, highlighting his deep knowledge of the market and ability to secure high-value investments for his clients. This deal further cements his reputation as a top expert in buyer representation in Nebraska, delivering exceptional results in commercial real estate transactions.
Notable Commercial Sales
Brightway Commercial proudly partners with local and national brands from a diverse array of industries.
14840 Evans Plaza, Omaha, NE 68116
$1,714,285
Buyer and Seller representation on dual tenant regional QSR restaurant investment sale on West Maple Street in Omaha, NE.
3509 N Louise Ave,
Sioux Falls, SD 57107
$5,175,000
Buyer representation on 54,151 SF office building purchase.
3809 S 25th Street, Omaha, NE 68107
$1,020,000
Seller representation on 14 unit apartment building in south Omaha, Nebraska.
38 Unit Multifamily Portfolio – Omaha, NE
$2,200,000
Seller representation on a three property portfolio of apartment buildings near Saddle Creek in Omaha, Nebraska.
210 S 24th Street,
Omaha, NE 68102
$1,785,000
Seller representation on 21 unit multifamily property in Omaha, Nebraska.
3600 University Ave,
Madison, WI 53705
$2,900,000
Seller representation on single tenant net leased property in Madison, Wisconsin.
Understanding the Commercial Real Estate Market
Navigating the commercial real estate market can feel a bit like trying to read the stock market—full of ups, downs, and unpredictability. But don’t let that scare you off! Understanding the market is the first step in making smart decisions, whether you’re buying or selling.
Current Market Trends in 2024
2024 is shaping up to be an interesting year for commercial real estate. We’ve seen some stabilization after the volatility of previous years, but there are still plenty of dynamics at play. One of the most notable trends is the continued growth in the industrial and logistics sectors. As e-commerce remains a dominant force, warehouses and distribution centers are in high demand. On the flip side, the office space market is still feeling the effects of the remote work trend. Companies are rethinking their space needs, leading to an oversupply in some areas and a demand for more flexible office spaces in others.
Economic Factors Impacting Investment Sales
Economic conditions are always a major player in the real estate market. Interest rates, inflation, and economic growth all impact how buyers and sellers approach deals. In 2024, we’ve seen a rise in interest rates as central banks attempt to curb inflation. This has led to a more cautious approach among buyers, who are weighing the cost of borrowing against potential returns. Sellers, on the other hand, are more motivated to lock in deals before any further rate hikes.
Regional Differences in Commercial Real Estate Markets
It’s crucial to remember that commercial real estate is highly regional. What’s happening in one city may not be happening in another. For example, while cities like New York and San Francisco may be experiencing slower office space recovery, cities in the Sun Belt—like Austin and Miami—are seeing robust growth. These regional differences can be attributed to factors such as population growth, local economic conditions, and even climate considerations. Understanding these nuances can give both buyers and sellers a competitive edge.
Market Cycles and Their Impact
Market cycles are another critical aspect to consider. Real estate markets tend to move in cycles, characterized by periods of growth, stability, and contraction. Recognizing where the market is in its cycle can inform your strategy. For instance, if the market is in a growth phase, buyers may want to act quickly to secure properties before prices climb higher. Conversely, sellers might hold off until the market peaks to maximize their returns. Understanding these cycles isn’t just about timing the market—it’s about knowing when to be aggressive and when to be cautious.
Key Considerations for Sellers
Selling commercial real estate isn’t just about slapping a price on your property and hoping for the best. There’s a lot more strategy involved if you want to maximize your return.
Importance of Property Valuation and Pricing Strategies
One of the most critical steps in selling your property is getting the valuation right. Overprice, and you risk scaring off potential buyers. Underprice, and you leave money on the table. Professional appraisals can help you strike that balance, but don’t stop there. Consider your property’s location, the current market conditions, and comparable sales in the area. In 2024, with market fluctuations still a factor, being precise with your pricing is more important than ever.
Preparing Your Property for Sale
First impressions matter, especially in commercial real estate. Before listing your property, take time to make it as attractive as possible to buyers. This could mean making necessary repairs, improving curb appeal, or even staging certain spaces to showcase their potential. A well-maintained property not only attracts more buyers but can also justify a higher asking price.
Marketing Your Property Effectively
In today’s digital age, how you market your property can make or break your sale. Gone are the days when a simple listing in the classifieds was enough. Now, you need a multi-faceted approach. Brightway Commercial will utilize online platforms, as well as traditional broker networks. High-quality photos, virtual tours, and detailed property descriptions are essential tools. The goal is to cast as wide a net as possible to attract the right buyers.
Negotiation Tips
Negotiation is where deals are won or lost. As a seller, your goal is to maximize your sale price while ensuring the deal closes smoothly. Be prepared to compromise, but also know your bottom line. In 2024, buyers may be more cautious due to economic uncertainty, so be ready to justify your asking price with data and strong market analysis. And don’t rush—sometimes, the best deals take a little longer to close.
Legal Considerations and Closing the Deal
Once you’ve found a buyer and agreed on a price, there’s still a lot to navigate before the deal is done. Legal considerations can vary depending on the property’s location and the type of real estate involved. Work closely with your attorney to ensure all documents are in order, from the purchase agreement to the title search. The closing process can be complex, so it’s crucial to have a trusted legal advisor who can guide you through it and avoid any last-minute surprises.
Essential Strategies for Buyers
Whether you’re a seasoned investor or new to the commercial real estate game, buying property requires a strategic approach.
Finding the Right Investment Property
The first step in any successful real estate purchase is finding the right property. This means knowing what you’re looking for—are you after a high-return investment, or are you more interested in a stable, long-term asset? In 2024, the market is offering a mix of opportunities, from high-demand industrial spaces to more speculative office properties. Create a checklist of your must-haves and nice-to-haves to streamline your search.
The Role of Due Diligence
Due diligence is your safety net in the real estate world. It’s all about thoroughly investigating a property before making a commitment. This process involves inspecting the physical condition of the property, reviewing financial records, and understanding any potential liabilities. Skimping on due diligence can lead to costly surprises down the road. In 2024, with the market in flux, thorough due diligence is more critical than ever.
Financing Options for Commercial Real Estate Purchases
Financing is a key consideration in any real estate transaction. While cash offers are always strong, they’re not feasible for everyone. Fortunately, there are several financing options available, from traditional bank loans to more creative solutions like seller financing or crowdfunding. Interest rates may be higher in 2024, but there are still opportunities to secure favorable terms, especially if you have a solid credit history and a strong business plan.
Negotiation Tactics
When buying commercial real estate, negotiation is where you can create real value. Don’t just focus on price—consider other terms like closing dates, contingencies, and financing arrangements. Remember, the best deals are often those where both parties feel they’ve won. In the current market, with buyers being more cautious, you might have more room to negotiate favorable terms.
Closing the Deal
Closing is the final hurdle, but it’s not without its complexities. As a buyer, you’ll need to ensure all your financing is in place, and that the property meets all your due diligence criteria. This is also the time to finalize any legal documents, such as the purchase agreement and title deed. Working closely with your broker and attorney will help ensure a smooth closing process and that you’re fully protected as the new owner.
Contact Us With Your Commercial Real Estate Needs
Our brokers are experts across all types of commercial real estate across the United States, from industrial to retail. Fill out the form below and we’ll connect you with the perfect broker for your needs.