5 Reasons Why Selling Your Industrial Property Directly to a Private Group Is More Profitable
If you’re thinking about selling your industrial property, you may assume that listing it with a broker or going through a lengthy marketing process is the best—or only—option. But in today’s fast-moving market, many property owners are discovering that selling directly to a private investment group is not only faster, but often more profitable.
Here are five key reasons why:
1. No Broker Fees or Commissions
One of the most obvious financial benefits of a direct sale is saving on brokerage fees, which can range from 3% to 6% of the final sale price. By working directly with a private buyer, you keep more of the proceeds—often tens or even hundreds of thousands of dollars depending on the asset’s value.
2. Faster Closing = Less Carrying Cost
Private investment groups often have internal capital or established lending relationships, allowing them to close faster than traditional buyers. That means you reduce your holding costs—such as property taxes, insurance, utilities, and maintenance—by weeks or even months, which directly impacts your net profit.
3. Sell As-Is — No Repairs or Upgrades Required
Unlike retail buyers or REITs that may demand costly repairs, inspections, or build-out improvements, private groups typically purchase industrial properties as-is. This means no capital outlay or delays on your end—and less risk of the deal falling through due to inspection-related issues.
4. Certainty and Flexibility in Deal Terms
Direct buyers offer a streamlined, flexible process. Whether you need a quick close, a leaseback option, or help with tenant transitions, private groups are usually more nimble and creative in structuring deals to match your goals. That flexibility can translate into higher real-world returns for sellers.
5. Strong Offers Based on Long-Term Value, Not Short-Term Appraisals
Private investment groups focus on long-term value creation—not just short-term comps or underwriting models. They often see value where others don’t, especially in partially occupied, underutilized, or redevelopment-prone properties. As a result, they may be willing to offer higher prices than institutional buyers or those relying strictly on lender appraisals.
While traditional sale methods have their place, they’re not always the most profitable path. If you’re looking to maximize your return, avoid fees, and close quickly, selling directly to a private group can be a smart, strategic move—especially in today’s industrial real estate market where speed, certainty, and flexibility matter more than ever.