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Q: We have a commerical property in Cranbrook that is fully leased and brings
in over $103,000/year plus NNN. There is a large retail tenant that has the
bulk of the revenue (about $86,500/year) with 7 years remaining on the
lease. The remainder of the property is leased to a landscaping firm on a
one-year lease (stable tenant, has been with us for a couple of years),
previous tenantwas with us for about 5 years. The property is 2.24 acres
within three blocks of the downtown core of Cranbrook.

We have tried using a local realtor to sell this property, but it sat on the
market for a year. We need our investment out of the property to develop
another property we own on Vancouver Island. Who should we contact and what
kind of cap rate should we use to realise a fairly swift sale?

A: Commercial properties in small cites can be difficult to sell in a climate
of economic uncertainty like we find ourselves in now. Too few buyers
willing to risk investing in areas far from their home base. The best bet
is to find someone local. If I were selling a property in Cranbrook or any
smaller city in BC I would try a multi faceted approach. Here are some
ideas: First step is to identify a competent Realtor. Try phoning the
local Real Estate Board and ask for a list of commercial Realtors. Next
would be to Google “commercial Realtors Cranbrook BC”. Check out their
websites and testimonials. See if your friends or colleagues have any
recommendations. Next I would look in the Western Investor newspaper and
see if there are any Realtors who specialize in similar product. Next I
would advertise your property on Craig’s list and Kijiji. Next see if
there are any local investor clubs in Cranbrook to promote your deal. Go to
Meetup.com for this. Try and meet local investors through the Chamber of
Commerce, service clubs such as Rotary, local accountants, property
managers. It will take rolling up your sleeves and putting in some work but
the results should make it worthwhile. Good luck!

About the Author

Ralph Case is President of the Real Estate Action Group, an organization with monthly membership designed to help members take action in Real Estate investing: www.reag.ca. From 2004 to 2008 he bought and sold over 1400 residential units either individually or with his joint venture partners. Ralph is co-founder of Worldwide Referrals Realty and has been a speaker at Real Estate and Investment conferences across Canada. He is also an author in Real Estate Action.

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