If selling your commercial property accomplishes an important financial, business or personal objective and you are willing to price it for today’s market it may make sense to sell now.

If you do not need to sell and would only accept a price the market is unlikely to support, waiting may be the better decision.

That is the short answer. The right answer for a particular owner requires a deeper dive.

I am asked this question almost every week by commercial property owners throughout Greater Los Angeles. Before discussing pricing or market conditions, I usually ask three questions:

• Why are you considering selling?
• What would you do with the proceeds?
• What happens if you do not sell?

The answers matter because owners sell for different reasons. Some want to retire, settle an estate, dissolve a partnership, reduce management responsibilities or reinvest through a 1031 exchange. Others are simply curious about what their property might bring.

Those are very different situations.

When Selling Now May Make Sense

Selling may be the right decision if the property no longer fits your plans, requires capital you do not want to invest, or has become difficult to manage.

For example, an owner approaching retirement may value certainty and liquidity more than the possibility of receiving a somewhat higher price several years from now. A business owner who has outgrown a building may also benefit from selling and directing the equity toward a larger facility.

Once the reason for selling is clear, the next step is to understand what today’s market will realistically support.

That means evaluating:

• Who is the most likely buyer: an owner-user, investor or developer?
• What similar properties are currently competing for that buyer?
• How long have those properties been on the market?
• What have comparable properties actually sold for?
• What financing challenges will buyers face?
• How long should the sale reasonably take?
• Does the property need repairs, environmental work or other preparation?

The answers help determine not only value, but also the right pricing and marketing strategy.

As we head into the fourth quarter of 2026, buyers in many Greater Los Angeles submarkets remain selective. Deals are still getting done, but buyers are paying close attention to price, property condition, financing costs and the alternatives available to them.

If an owner has decided to sell in this environment, I generally recommend setting an asking price that is competitive enough to generate serious interest. That does not mean giving the property away. It means pricing close enough to the market to encourage qualified buyers to engage.

This is not an ideal market for adding a premium just to “see what happens.” An overpriced property can sit for months, lose its initial momentum and require repeated price reductions. By that point, buyers may begin wondering what is wrong with it.

I am dealing with this right now.  A few of my listings started with an asking price significantly  above the market (no per my recommendation) and now these owners are chasing the market down, constantly playing catch up and always behind.

When Waiting May Be the Better Choice

Waiting may make sense if you have no real need to sell, the property is performing well and you would not accept a price supported by the current market.

Suppose an owner wants $5 million, but recent sales, competing listings and buyer feedback indicate that the property is more likely to trade near $4.25 million. If the owner would never seriously consider an offer in that range, listing the property now may accomplish very little.

The better strategy might be to improve the property, address deferred maintenance, stabilize the income or simply continue holding it. In some situations, securing a tenant could strengthen the property’s value. In others particularly when the most likely buyer is an owner-user leasing the building could reduce its appeal. The strategy needs to match the likely buyer.

Waiting also has risks. Interest rates may change, but so can vacancy, operating expenses, taxes, insurance costs and buyer demand. No one can guarantee that waiting will produce a better price.

The Decision Is About More Than Timing

There is rarely a universally perfect time to sell commercial real estate. The better question is:

Does selling now help me accomplish my objectives at a price the current market can reasonably support?

A knowledgeable broker should not automatically tell every owner to sell. The broker’s job is to explain the market honestly, identify the most likely buyer, estimate a realistic value and help the owner understand the tradeoffs involved.

Commercial real estate brokers are in the market every day. We see which properties are receiving activity, why buyers are walking away, what lenders are requiring and where transactions are actually closing. Owners should expect their broker to share that information even when it is not the answer they hoped to hear.

If you are considering selling a commercial or industrial property in Greater Los Angeles, start with a clear understanding of your goals and an honest assessment of the market. Then you can make the decision based on evidence rather than hope.

If you are curious to learn more, please reach out anytime.

Anthony S Behar
EVP/Partner

310.880.2329

anthony@majorproperties.com