Is it better to sell or rent your commercial property?

The advantages of renting a commercial property

With a profitability that varies between 5 and 10%, renting a commercial property yields up to twice as much as residential rental real estate. Furthermore, rental vacancy and unpaid rents are less frequent, and the commercial lease is always concluded for a long period.

As a general rule, the tenant can only terminate the rental contract after 3 or 6 years (from the date of entry into the premises). If they wish to terminate the contract, they must notify the owner several months before their departure date and under certain conditions. This reassures the owner about the continuity of rental income throughout the duration of the rental contract.

Of course, risks are always present, but they are reduced compared to residential housing, which the tenant can more easily vacate. Furthermore, the landlord and the tenant benefit from great contractual freedom. Thus, you can pass on certain charges to the tenant.

Why sell your commercial premises?

Unlike rental, which represents a long-term real estate investment, selling a commercial property allows you to quickly generate significant liquidity. This option is to be favored when you are considering embarking on new projects or facing heavy expenses.

Another advantage of selling your commercial building is avoiding the constraints related to rental management and the risks of unpaid rents.

Renting or selling a commercial property: factors to consider

Whether it is a matter of selling or renting a commercial property, location is always the key factor in determining the sale price or rent. It is also a decisive factor in quickly finding potential candidates. Generally, properties located on main shopping streets, city centers, around metro stations or bus and tram stops are the most sought after. The proximity of a large store or a renowned brand often considered as a “locomotive” and parking facilities also represent significant assets that contribute to boosting the attractiveness of the business for sale or rent.

Also note that the size of the premises can influence the sale price. Indeed, tenant preferences vary according to their needs, but also according to commercial real estate market trends, supply and demand, and economic conditions.

Who to turn to for renting or selling a commercial premises?

As a general rule, an owner who wishes to sell or rent their commercial building can find potential candidates on portals specializing in commercial and professional real estate. Word of mouth and professional networks also represent communication channels for disseminating the sale or rental announcement.

That said, calling on a specialized business real estate agency like Allten is by far the best option to quickly find a tenant or buyer for your commercial property. From estimating the sale or rental price to managing visits and analyzing the solvency of candidates, a real estate agency specializing in commercial properties can take charge of the entire process.

Good to know:

The process of selling or renting a commercial space is quite different from that of a residential building. Due to the complexity of the commercial real estate market and the specifics related to commercial leases, professional support is necessary. Allten, your business real estate agency in Belgium, is best placed to advise and support you until the conclusion of the lease.