Identify your objectives
Some owners want a complete exit; others want to retain property as a separate investment. Consider personal cash needs, ongoing landlord responsibilities and risk tolerance with your advisers before assuming retained property will provide passive income.
Model realistic occupancy costs
If the business has paid below-market rent to an owner-controlled entity, the buyer needs an earnings presentation that reflects a supportable future occupancy arrangement. A licensed property professional can advise on the property market.
Use qualified property representation
Lease terms, tenant negotiations, property marketing and other regulated real estate activities belong with appropriately licensed professionals. Identify that role early rather than asking a business intermediary to negotiate it informally.
Coordinate the documents
Counsel can link the business purchase and property lease through conditions and coordinated closing documents. Responsibilities, deposits, repairs, guarantees and failure-to-close provisions need careful treatment. An addendum is documentation, not a licensing exemption.
Consider financing and buyer fit
A buyer’s lender may evaluate occupancy costs and lease duration. The operating company must support both the purchase financing and its continuing expenses. The seller’s preferred rental income and the buyer’s capacity need to be evaluated together.
Plan your ongoing relationship
A former owner who becomes the landlord keeps a business relationship with the buyer. Define communication, maintenance and default procedures so an operating disagreement does not become an unclear property dispute.
Related resources
Seller checklist · The sale process · Our role and licensed partners
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