Hold VS Sell Analysis
Deciding Whether to Sell Commercial Real Estate in Canada: Key Considerations.
Owning commercial real estate in Canada is often considered an advantageous position. However, determining whether or not to sell can be a challenging question that requires careful consideration. One crucial tool in the decision-making process is the Hold versus Sell analysis, which involves complex real estate investment analysis that considers cash flows, financing, and tax implications. To make an informed decision, it's vital to consider the following key factors:
Current real estate market conditions: A high demand and low supply market may be an excellent opportunity to sell and maximize profits.
Long-term investment goals: A hold versus sell analysis can help determine the best course of action for those looking to hold onto the property for an extended period.
Current financial standing: If you require immediate cash flow or are experiencing financial difficulties, selling the property may be the best option.
Tax implications: It's essential to consult with a tax professional to understand the significant tax implications involved in selling commercial real estate.
In conclusion, the decision to sell commercial real estate in Canada should be based on a comprehensive analysis of current market conditions, long-term investment goals, and financial standing. The Hold versus Sell analysis can provide valuable insight into potential outcomes, helping you make an informed decision.
CASE STUDY: DOWNTOWN STAND ALONE RETAIL
The client sought to dispose of a downtown Vancouver stand alone retail building. COVID-19 has had outsized impacts on different retailers and this property was disproportionately affected and left vacant in a soft market. We created a lease campaign and proposed a hybrid percentage rent scaling up to pre-covid triple net rates over the term. After successfully delivering tenants, this property will explore disposition at another time.