The sale of an industrial building can be a long and complicated process, with numerous legal obligations for both the owner and the buyer. It is important to understand these various characteristics in the context of a sale. We will present to you here the mandatory diagnostics to be carried out for selling, how to properly evaluate an industrial building, the sequential steps to follow to finalize the transaction, and the obligations that fall on the buyer.
The mandatory diagnostics to be carried out
The sale of an industrial property requires the owner to be able to carry out diagnostics related to their property. This is what is called a technical diagnostic file or DDT. Thus, in addition to knowing the price of industrial buildings per m2, the owner must be able to present this file. This is so that the transaction between the seller and the buyer is legally confirmed. The reports of these diagnostics must be transmitted to the notary in charge of the sale, either at the time of signing the preliminary sales agreement or during the drafting of the deed of sale. If the industrial building was constructed after July 1, 1997, three documents must be presented. First, a termite diagnosis (depending on the location of the property), then an EPC (Energy Performance Certificate). If the building is located in an area affected by a prevention plan, an ERNMT (State of Natural, Mining and Technological Risks) is required. When the building was constructed before July 1, 1997, a fourth mandatory real estate diagnosis must be presented. This is a report indicating the presence of materials containing asbestos.
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Evaluating the price of your industrial building
When the owner wishes to sell an industrial property, the decisive question is the selling price. To do this, it is necessary to carry out a valuation of the property for sale, and this in the most objective way possible. Several criteria must be taken into account, both regarding the building itself and its immediate environment. The determining factors are:
- The geographical location of the premises;
- Accessibility;
- Proximity to transportation means;
- Upcoming renovations, etc.
There are several procedures to evaluate the value of an industrial building. The evaluation can be carried out by comparing it with similar properties already on the market. The most reliable evaluation method is to invite an expert. A replacement value assessment is also possible. This means calculating the value of the land and the reconstruction of an identical property.
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The steps to follow to finalize the sale
The process of selling an industrial building includes a legal analysis, an urban study, a market study, a financial study, and a mandatory diagnosis. The sale of an industrial building is a transaction that involves considering certain factors.
- The area where the building is located: as with any other real estate, location is a key element. The quality of communication networks and mobility are other elements to consider. Not to mention the presence of other industries and complementary suppliers.
- The condition and size of the building: ensure that maintenance is up to date and that all inspections have been carried out.
- Market trends: check if demand is currently higher than supply. If so, you may consider increasing the selling price.
- Price setting: you must set the price in reference to the purchases and sales of similar industrial warehouses in the same area. The price of the land, the characteristics of the construction, and the equipment are all factors to consider.
The second step is the deed of sale issued by the buyer of the building. The latter then drafts a promise of sale to finalize the transaction. You can entrust this task to a specialized property manager. In the end, both parties sign a document that defines the selling price in exchange for the handing over of the keys. In conclusion, the dynamic and progressive growth of demand in the industrial real estate sector has continued to gain momentum in recent years. Today, the current health crisis has moderated its expansion but has not completely paralyzed it. In this changing environment, it is vital to have good advice on how to sell an industrial building while maximizing the profitability of your operations. So do not hesitate to follow the advice above.