Creating Demand in a Low Demand Market
The Challenge
Our client decided to consolidate his two retail stores, necessitating the sale of a historic building that was originally constructed as a residence in the mid-1800’s. While rich in architectural character, the property presented inherent challenges as a modern retail space. Chief among these was access to the second floor, which required passage through the primary retail area—an obstacle to creating a distinct, leasable second unit. Given the building’s vacancy, our target buyer was a retail owner-occupant. However, the prevailing high-interest rate environment and the cautious market sentiment around the presidential election, constrained competitive bidding, which was in contrast to the fervent demand seen in the years following the pandemic.
Tartan Action Plan
Recognizing the complexity of the asset, our first priority was establishing a pricing strategy reflective of both market conditions and the property’s unique attributes. While the valuation of the ground-floor retail component was straightforward, determining the appropriate value for the second and third floors—likely to serve as office space or an owner’s apartment—required a more nuanced approach. To enhance marketability, we advised the client to reduce on-site inventory, allowing the building’s historic charm and architectural appeal to take center stage. We then executed a highly targeted marketing campaign, engaging boutique retailers and retail-focused brokers through direct outreach. Our strategy included personalized social media direct messaging to retailers and a proactive email and phone campaign directed at brokers specializing in retail transactions.
The Results
Despite showing the property to only five prospective buyers, Tartan successfully negotiated a sale at 93.6% of the asking price. Our targeted marketing and strategic negotiations enabled us
