How long does it take to sell a commercial building in the Denver area?

Answered by Charlie Cummings, Colorado Real Estate BrokerUpdated October 18, 20262 minute read
The short answer

Plan on about 4 to 12 months from listing to closing. Getting ready takes a few weeks, finding the right buyer commonly takes 2 to 9 months depending on price, property type and how it is priced, and closing usually takes 45 to 90 days after a contract, mostly for the buyer's due diligence and financing.

A typical timeline

01

Prepare to list

2 to 4 weeks

Get a broker opinion of value, gather leases, expenses, surveys and permits, and fix anything that will scare a buyer in an inspection.

  • The more documents are ready, the faster due diligence goes
02

Market the property

2 to 9 months

List on CoStar, LoopNet and Crexi, call likely buyers and neighboring owners, tour and collect offers. Well priced, smaller owner user buildings can go fastest. Specialty buildings and larger investment properties can take longer.

  • The first 30 to 60 days of marketing bring the most interest
03

Negotiate the contract

1 to 3 weeks

Agree on price, earnest money, due diligence and closing dates, and what happens if the buyer's financing falls through.

04

Due diligence

30 to 60 days

The buyer inspects the building, reviews title, survey, zoning, leases and environmental reports, and finalizes the loan.

  • SBA loans often need 60 to 90 days to close
05

Closing

1 to 4 weeks

Final loan approval, the closing documents and the money changing hands.

What speeds a sale up

  • Pricing it right from the first day
  • Having leases, expenses and building records ready before you list
  • Being flexible on the closing date
  • Choosing a buyer whose financing is already lined up

What slows it down

  • A price set well above the comps
  • Surprises in due diligence, like an environmental issue or unpermitted work
  • Tenants with short or unclear leases
  • Buyers who still need to find financing

Markets change. Ask your broker for current days on market for buildings like yours.

Common follow up questions

Can I sell my building faster off market?

Sometimes. Going straight to a few likely buyers can be quicker and more private, but you may leave money on the table without the competition of full marketing.

What documents should I gather before listing?

Leases and the rent roll, two to three years of operating expenses, property tax bills, any survey, environmental or inspection reports, and records of major repairs.

Does a 1031 exchange change the timeline?

It can. A buyer in a 1031 exchange has strict deadlines to identify and close on a property, which can make them a motivated, fast buyer.

This page is general information, not lending, legal or tax advice. Programs, limits and terms change, and every situation is different. Talk with your lender, attorney and CPA before you decide.