We are talking about a unique scenario that comes up when a business owner actually owns the underlying commercial real estate. While many business owners lease their space, those who own both assets face some interesting choices when it comes time to exit.
When you own both the business and the physical property, a sale becomes then really about two distinct assets that need to be evaluated carefully. As an owner, you have a few different paths you can take. You might decide to sell both the business and the real estate together to a single buyer. Or, you might find it makes more sense to sell them individually to different parties. Another highly effective strategy is selling the business operations while choosing to keep the property and lease it back to the new owner, creating a steady stream of passive rental income for your retirement…
This is exactly where having a commercial real estate broker as an advisor becomes invaluable. Making the right decision requires a unified strategy. You have to understand how the lease structure will affect the company’s future profitability, and how the value of the property ties into the health of the business operations. A specialized advisor helps you weigh these options clearly so you do not leave money on the table or structure a deal that hurts one asset to benefit the other.
Navigating these choices with a professional ensure you maximize the total value of everything you have built over the years.