The sale of commercial real estate is a procedure that requires a complex approach and the preparation of objects for concluding an agreement with buyers.
Commercial real estate includes buildings and structures used in conducting commercial activities. Such objects can include any areas used for profit: various hotels, office premises, warehouses, shopping areas, and complexes of the entertainment sector.
Today, the commercial real estate market is gradually recovering. After a significant drop at the beginning of military operations in Ukraine, despite increased risks and difficult economic conditions, Ukrainian real estate continues to sell, recovering indicators.
The demand for various segments of such objects is growing - retail spaces, warehouses, production locations, office buildings and premises, etc. Undoubtedly, the demand is observed mostly in safer and more protected regions of the country, and changes depending on the circumstances.
However, it is worth taking into account the significant competition on the market, which has increased due to the influence of today's conditions. Of course, it is necessary to take into account all factors - from the location to the technical features of the premises. Therefore, the issue of properly preparing a room or building for sale, creating attractiveness for potential buyers is becoming more and more relevant. Let's consider in more detail.
Commercial real estate: features
Commercial real estate has a number of differences from residential buildings and apartments:
- are not included in the housing stock;
- are not suitable for registration of residence;
- in most cases, they are used for profit;
- have different taxation conditions.
If the sale of such property is carried out by a legal entity, it has several features. A decision of the general meeting of participants will be required for the sale of an object that is owned. Even if the person is the only participant, such a document will be necessary. When selling real estate, it is necessary to take into account not only the norms of current laws, but also the provisions of the company's statutory documents. In some cases, the company charter prohibits alienation of separate property, or alienation in one way or another. However, in such cases, it is possible to make the necessary changes to the Charter, after which proceed to the sale procedure.
In addition, if there is a need to donate real estate, the relevant statute should provide for such a possibility. In some cases, there may be a quorum requirement to confirm the sale. The sale of the property of a legal entity is performed by a manager or a representative who has a valid power of attorney with the right to sign on behalf of the legal entity, enter into agreements, enter into legal relations and pay fees. In addition, it is worth remembering that settlements with a legal entity are carried out in cashless form.
Sale of non-residential premises: documents for sale by individuals and legal entities
The most important part of preparing for an agreement for the sale of commercial real estate is the collection and verification of a package of documents. In some cases, it is advisable to involve specialized specialists and lawyers.
If the sale is carried out by a legal entity, it is necessary to prepare the following package of documentation:
- a document confirming ownership;
- state registration of property;
- identification code;
- the company charter as amended;
- founding agreement, including amendments;
- extract from the register of property rights;
- technical passport of the facility;
- passport of the director, or certified power of attorney for representatives;
- protocol and order regarding the appointment or election of the head of the company;
- certificates confirming the company's activities;
- confirmation of the absence of a tax lien, as well as the absence of prohibitions on the alienation of property;
- protocol on the sale of real estate, in which its value must be indicated.
Of course, the full list of necessary documentation will depend on various factors, including the features of the object, the founding documents of the company, and other nuances.
If the real estate is sold by an individual, it is necessary to have the following package of documents: a certificate of ownership, a technical passport for real estate and a land document, an extract from the State Register of Encumbrances for all owners, extracts from the relevant register regarding prohibitions on alienation, passports and identification numbers of each of owners, marriage registration certificate and related documents, consent of the wife or husband, if the property is jointly owned. In addition, in any case, you need to have documents confirming the preliminary assessment of real estate.
Before selling the property, it is necessary to carefully check all documents, confirm their relevance.
Commercial real estate: what to consider before selling
Despite all the difficulties of today, offices and commercial premises, warehouses are in demand in the market, are able to bring income to the owner and are gradually increasing in price.
Before putting it up for sale, you should make a list of possible options for using the real estate. Modern industrial buildings are often converted into themed bars, co-working spaces, and lofts. Commercial premises with a facade exit to the street can become a post office, hairdresser, cafeteria, or vice versa. Objects with a yard can be turned into a kindergarten, offices and clinics. It is also possible to get additional benefit by dividing the object into several separate segments, or combining it with neighboring premises and buildings.
It is possible to make sketches of variations in the use of the object, which will allow you to sell specific opportunities and attract more attention from investors. It is no less expedient to make schemes in the form of 3D visualization.
In some cases, the main value of the object is the land, so it is necessary to check its readiness for sale in advance, determine the status, purpose and exact area. It is also necessary to take into account urban planning restrictions and the terms and cost of its lease.
It is also necessary to outline unique characteristics that can attract the attention of specialists: the presence of certification of the premises for banking institutions, pharmacies or notary offices, a warehouse with appropriate equipment, features of the ventilation system, aesthetic features of the building, the presence of neighbors, existing licenses and permits for reconstruction, development plans infrastructure of the city around.
In addition, it is worth making a detailed list of all the advantages and disadvantages of the object, conducting an analysis of the commercial real estate market as of today, and comparing the object with other offers.
Sale of non-residential premises: what needs to be prepared
Capital or design repairs are not able to pay for themselves. You need to put the room in order, wash the windows, repair all kinds of minor damages, get rid of garbage and old furniture, and also put the yard in order.
If communications and specialized equipment are declared in the ad, and it is necessary to ensure its appropriate functionality — replace non-working light bulbs, check faucets, hoods and air conditioners and other relevant equipment
For the sale of class C offices or a trading hall, the best option is a White Box — a room with connected communications and ready-to-finish walls. Office premises and commercial spaces belonging to class B and A are usually left in a draft form, and the user directly implements his idea in the future.
If we are talking about the sale of apartments, beauty salons, boutiques, then you need to get rid of all reminders of previous customers, creating a clean room, with an emphasis on future uses. If you plan to show industrial objects, trade halls or warehouses, you should prepare a mini-zone in advance for negotiations with buyers.
It is also important to prepare a presentation package of documents that will be easily distributed to potential buyers during or before the demonstration in electronic form. It is also necessary to prepare high-quality photo and video materials that will demonstrate the condition of the object and all its advantages. It is important that the materials show only the object, it is necessary to remove all personal belongings of employees, goods in the warehouse, etc. from the frame. Premises with designer repairs are photographed by analogy with hotels.