Top-Five Tips For Divesting (Lease Or Sell) Unneeded Corporate Real Estate

Gerard Staudt, Senior Managing Director, Head of Dispositions, Savills North America

The world of selling and leasing excess real estate (dispositions) is fraught with pitfalls. Many companies find book values and appraisals higher than what the market will pay. Transactions can unravel due to complexities that non-disposition specialists encounter when disposing of excess space, often because they do not have the necessary dedicated expertise.

While typical real estate service firms have individuals conducting acquisitions (securing new space) and dispositions (leasing and selling surplus space), the market does not generally offer dedicated individuals whose focus is solely on selling and leasing corporate excess space.

Gerard Staudt, President of CoreDispo’s dedicated Global Real Estate Leasing and Sales Team, gives his top five tips for divesting (leasing and sales of) corporate real estate.

The world of selling and leasing excess real estate (dispositions) is fraught with pitfalls. Many companies find book values and appraisals higher than what the market will pay.

1. Have the necessary corporate approvals in place prior to marketing.

Corporations with excess space often go to market without having approvals required to complete the transaction. This can result in corporations taking 20-to-30 percent of property off the market after they have spent an enormous amount of time and money marketing it. (Details in full article).

2. Whenever you conduct a sale or lease, you must do your homework upfront.

It’s far better to address issues at the start of a process rather than wait for them to be uncovered on the day of the deal. First, this information allows the corporation to make an educated decision of whether they are prepared to dispose of the space before going to market and, second, if they do go to market, the data allows the tenant or buyer to make a quicker decision on whether the site works for them or not. (Details in full article).

3. Learn and understand the competition to set terms and prices.

Know the worst and best possible terms and prices that the market has accepted for similar properties. In all requests for pricing or value, it is critical to state whether the pricing will be used for insurance, to buy the site, sell the site, lease a specific portion for a specific timeframe - or for some other use. Be detailed and specific. (Details in full article.)

4. Have your paperwork in place.

Draft all transaction paperwork and legal agreements before marketing – well before any prospect submits an offer.

5. Respond to offers quickly.

Following the long time it may take to bring in qualified prospects, corporations should be prepared to respond to all prospect offers within three business days by comparing offers to the corporate approvals that should already be in place and supply legal agreements to prospects within several days after agreement of basic business terms. That is the speed and the process by which the best competing sites may operate.

CoreDispo (Corporate Real Estate Dispositions, Inc.) was formed to help corporations solve pitfalls involved in selling and leasing excess space. With its sole dedicated focus on corporate excess space, CoreDispo’s processes provide clients with accurate pricing, timing, and cost upfront. This allows clients to make realistic projections and exceed targets. The CoreDispo team has delivered $8 billion in surplus real estate transactions for United Technologies, Citibank, Verizon, Motorola, Johnson Controls, Dell/EMC, IMS, and local firms – including prior transactions to CoreDispo. CoreDispo (www.CoreDispo.com) guarantees accurate pricing and timing up front to provide surety, including improved cash flow and enhanced balance sheet results.