A Publication of WTVP

Like the stock market, investors in commercial real estate face what many have found to be the most challenging aspect of ownership: deciding when it's time to sell. Many years ago, owning investment real estate was limited to elite individuals and institutions, but that's given way to a wide spectrum of individuals who've seen the financial benefits and security of investment real estate.

In rare situations where a buyer will pay a substantial premium over the market, the decision to sell might be an easy one; but where the offer to buy is on par with the current market, the decision becomes more complicated. Many times, the decision is based on financial analysis, but more often, these are tempered by other non-financial considerations.

Financial Considerations

Non-Financial Considerations

Leaving the results of financial yield analysis, it isn't unusual to discover an initially well-suited investment is no longer a good fit five to 10 years later. To determine how well an investment still fits with current goals, the following can be considered:

What's the answer? After calculating relevant financial rates of return and reducing other issues down to a comparative figure, the investor should now be in a position to decide. Both results should point to a clear choice. If not, then seeking outside consultation and relying on personal experience and judgment may be the deciding factor. IBI