Would Anyone Buy This Property From Me in Five Years?

Episode 91 – Would Anyone Buy This Property From Me in Five Years? You might have found a great commercial property. The numbers stack up, the tenant looks good and the yield is attractive. But there's another question you need to ask before you buy: Who is going to buy it from you when you want to get out? In this episode of The Commercial Property Podcast, Suzi Carter explains why some of the most important decisions about selling a commercial property should actually be made before you buy it. Because your exit isn't just about what happens to the property market. A 15-year lease today becomes a 10-year lease in five years. Wait longer and the remaining term gets shorter again. That can change how investors view the risk, how lenders view the property, the yield a future purchaser might require and, ultimately, the price they are prepared to pay. Suzi explains why understanding your future buyer is so important, how to think about the optimum time to sell and why good asset management can potentially make a property considerably more attractive when the time comes to exit. You'll also discover why the best exit strategy isn't necessarily simply to sell. It could be to regear a lease, remove a break, improve the rent, refinance, reposition the property or create several different exit options. In this episode, you'll discover: Why Suzi considers the exit before buying a commercial property The question every investor should ask: "Who is going to buy this from me?" Why the size of your future buyer pool matters How a shortening lease can affect yield, value and saleability Why selling in year five rather than year seven or ten could make a significant difference How relatively small movements in yield can create large movements in capital value Why your future buyer's lender matters almost as much as the buyer When a lease regear or extension could be more valuable than selling How asset management can widen your future buyer pool Why specialist properties and changing occupier demand need particularly careful thought How to spot potential obsolescence before you buy Why Suzi prefers properties with more than one potential exit How to reverse-engineer a commercial property investment from the eventual sale The key lesson is simple: Don't just ask whether you want to buy the property today. Ask whether someone else will want to buy it from you tomorrow — and what you can do during your ownership to make them want it even more. Because a successful commercial property investment isn't simply about buying well. It's about creating value, protecting value and ultimately being able to realise that value. Learn More Want to become better at analysing commercial property opportunities, understanding risk and spotting the asset management opportunities that other investors miss? Visit www.suzicarter.com for commercial property training, resources, live events and information about working with Suzi. And don't forget to subscribe to The Commercial Property Podcast so you never miss an episode. If this episode makes you look differently at your next commercial property investment, please share it with another property investor who needs to hear it.