| Primary buyer type |
Businesses, owner-operators, nonprofits, medical and professional practices, religious institutions, educational institutions, and foreign governments |
Private investors, family offices, REITs, and institutional buyers |
| What drives price? |
Occupancy value to the buyer — what they save in rent and gain in stability |
NOI and cap rate — what the building generates as an income-producing asset |
| Marketing channels |
Industry-specific outreach using segmented buyer lists by sector — retailers, educational institutions, healthcare providers, religious groups, corporations, and nonprofits — rather than broad listing platforms |
CoStar, LoopNet, broker networks, and institutional investor databases |
| Optimal building condition |
Vacant and move-in ready, or with a short-term lease expiring soon |
Fully leased with strong tenants on long-term leases at market rents |
| Pricing methodology |
Price per SF for occupancy; comparison to what equivalent lease space costs in the market |
Gross rent multiplier or cap rate applied to net operating income |
| Due diligence timeline |
Often shorter — buyer is focused on physical condition, not lease complexity |
Longer — detailed lease review, rent roll audit, and expense verification |
| Is the premium real? |
Yes — documented across 1,023 Manhattan sub-100,000 SF transactions over 40 years, averaging 16% above investor pricing |
No, standard investment sales to traditional financial buyers do not command a premium |
