Commercial Sellers and Landlords

Client Groups

  • Commercial sellers: Owners disposing of office, industrial, retail, or commercial land assets.
  • Landlords: Owners leasing space across all commercial property types.
  • Investors: Owners repositioning assets to improve income or prepare for sale.
  • Developers: Owners marketing newly built or redeveloped commercial space.

Disposition and Lease-Up Paths

Selling commercial property

Transfer of ownership for income-producing or owner-occupied assets.

  • Use cases: Portfolio adjustments, capital reallocation, retirement, redevelopment.
  • Key considerations: Pricing, NOI stability, tenant quality, lease terms, market timing.

Leasing commercial space

Securing tenants for office, industrial, retail, or flex properties.

  • Use cases: New construction, vacancy backfill, tenant rollover, repositioning.
  • Key considerations: Asking rent, NNN structure, concessions, tenant mix, build-out.

Valuation and Pricing Strategy

Market-based pricing

  • Comparable sales or lease rates for similar properties.
  • Current vacancy and absorption trends.
  • Submarket demand and supply conditions.

Income-based pricing

  • NOI and expense structure.
  • Cap rate expectations for the asset class.
  • Tenant credit strength and lease duration.

Risk adjustments

  • Lease rollover exposure.
  • Deferred maintenance or capital needs.
  • Location stability and long-term demand.

Preparing the Property

Operational review

  • Evaluate rent roll, expenses, and lease terms.
  • Confirm CAM allocations and NNN structure.
  • Identify upcoming renewals or expirations.

Physical review

  • Assess building systems and deferred maintenance.
  • Review parking, access, signage, and visibility.
  • Document recent improvements or upgrades.

Positioning strategy

  • Define target buyer or tenant profiles.
  • Highlight functional strengths and location advantages.
  • Clarify use cases and zoning compatibility.

Marketing and Exposure

  • Listing materials: Floor plans, photos, site plans, rent rolls (as appropriate).
  • Distribution: Commercial listing platforms and targeted outreach.
  • Messaging: Focus on data, functionality, and operational fit.

Negotiation and Execution

For sales

  • Review offers and buyer qualifications.
  • Evaluate contingencies and timelines.
  • Coordinate due diligence and closing.

For leases

  • Compare proposals and tenant credit.
  • Negotiate rent, NNN structure, term, and concessions.
  • Coordinate lease review and execution.

Risk Management

  • Tenant quality: Credit strength and business stability.
  • Lease structure: NNN, gross, or modified gross implications.
  • Vacancy exposure: Timing and concentration of expirations.
  • Market cycle: Supply, demand, and construction pipeline.
  • Capital needs: Roof, HVAC, parking, and system updates.

How BHGRE Commercial Supports Sellers and Landlords

  • Local ownership: Decisions informed by direct knowledge of Sioux Falls, Mitchell, and surrounding markets.
  • Market expertise: Tracking vacancy, rents, absorption, and development across property types.
  • Data-driven guidance: Clear analysis of pricing, income stability, and risk.
  • Process clarity: Defined steps for disposition and lease-up.
  • Risk-aware advisory: Focus on long-term stability and asset performance.
  • Multi-market coverage: Ability to position assets across eastern South Dakota.