Get the most out of your property: Options all buyers, sellers and landlords should consider

In today's economic climate sellers of retail properties are facing challenges previously unseen to them in past years. Landlords are spending more and more time negotiating with potential tenants and renegotiating with existing ones. Purchasers of commercial real estate are increasingly becoming less competitive with their bids, looking for higher cap rates, higher occupancy levels and better financing options. The divide in asking prices and bids between the buyers and sellers is exponentially growing. In order for sellers to command top dollar for their properties, there are several crucial factors that must be in play. Having a steady income in an investment property is fundamental. With vacancies climbing to record highs, landlords should be keenly aware of the terms of a new lease. Whether or not to sign new tenants to a long-term lease will significantly affect the value of a property currently on the market. Although purchasers and lenders want actual income in the form of a paying tenant, they are also looking for upside. Landlords should be cautious to sign a long-term lease that will lock in the rent at todays below market rates. Instead, sellers should consider annual increases which offer both upside to buyers and ensured occupancy to sellers. Sellers need to consider the risks of holding on to underperforming properties in the current market. Depending on the location of your shopping center or strip center, vacancies can be difficult to fill. Many local landlords are currently facing simultaneous multiple vacancies. In many instances, the option to hold on to the property and ride out the economic circumstances is the initial choice for owners. Sellers must understand that in this market, buyers and lenders are responsive to the economic climate and are making bids which project for most retail vacancies. Although sellers should not expect to see 5 and 6 percent capitalization sales prices, attainable asking prices will lead to a sales price both buyer and seller can be happy with. In order to get the most out of your commercial property, sellers should take advantage of seller financing options to maximize profit. Although lenders are making it more difficult to purchase properties, sellers now more than ever have the advantage of negotiating their sales price based on holding a first mortgage. Instead of a lump sum, sellers are able to collect interest that would traditionally be paid to the bank. Seller financing is a unique option to get the most out of your property and generate the profit sellers are looking for. Real estate has and will continue to be the safest place to invest your money. Selling commercial real estate continues to generate profit and security for many owners. Being aware of the market and strategically navigating a real estate transaction are proving to be the formula for success in today's uncertain economic times. Having an experienced real estate broker to turn to is one of the best decisions an owner can make when selling their commercial property. Ron Koenigsberg is the president of American Investment Properties, Garden City, N.Y.