Step 1: Define Disposition Strategy
Disposition strategy starts with clarity on objectives — sale proceeds, tax positioning, timing flexibility, and continuity considerations. Are you exiting industrial real estate entirely, or recycling capital into other industrial assets? Is your priority maximum sale price, certain closing timing, or specific buyer profile? Different objectives lead to different marketing strategies. Document the objectives upfront with your broker, tax advisor, and legal counsel.
Step 2: Underwrite the Asset
Asset underwriting establishes the realistic sale price range and identifies value drivers and risk factors. Underwriting covers in-place rent vs. market rent (for income-producing assets), lease expiry profile, capex requirements, environmental considerations, zoning compliance, and operational characteristics. Buyer underwriting will replicate this analysis — addressing potential issues upfront accelerates the closing process and protects pricing.
Step 3: Select the Right Buyer Pool
Different asset profiles attract different buyer pools. Stabilized institutional-grade product attracts Canadian REITs, US institutional capital, and pension capital allocators. Value-add product attracts private equity and entrepreneurial buyers. Owner-user assets attract operating businesses considering acquisition. Investment-quality private assets attract Canadian and US-based private investors and family offices. The marketing strategy should match the target buyer pool — broad open marketing for institutional product, confidential outreach for select assets.
Step 4: Develop the Marketing Package
The marketing package — offering memorandum (OM), financial models, comparable analysis, photography, drone footage, floor plans, and supporting due diligence material — is the primary tool for engaging buyers. Quality marketing materials directly affect deal economics. Buyers underwrite based on the materials provided; better materials produce better underwriting and stronger offers.
Step 5: Confidential and Open Marketing
For most assets, the right approach combines confidential pre-marketing to known buyer relationships with broader open marketing to surface the full buyer pool. Pre-marketing identifies the strongest motivated buyers without exposing the asset broadly; open marketing creates competitive tension and surfaces buyers outside the pre-marketing network. The balance depends on asset profile, market conditions, and seller objectives.
Step 6: Manage Tours and Offers
Tour coordination, data room management, and offer solicitation should follow a disciplined process. Set clear timelines and expectations for buyers — first-round offers by a stated date, best-and-final processes where multiple bidders are active. Maintain competitive tension throughout. Buyer behavior during the offer process reveals seriousness and certainty of close.
Step 7: Negotiate the Deal
Offer negotiation covers price, deposit structure, due diligence period, financing contingencies, closing date, post-closing transition, and dozens of other terms. The strongest deal is not always the highest price — certainty of close, ability to fund, and reputation for executing all factor into the decision. Counter-offers, best-and-final processes, and term negotiation should align with your strategic objectives.
Step 8: Close
Closing coordination spans due diligence (environmental, structural, zoning, title), financing, legal documentation, and physical transition. Most industrial dispositions close 60 to 120 days from accepted offer. Complex assets or contingent transactions take longer. Proactive coordination across legal, tax, environmental, and lender partners minimizes timing risk and protects deal economics.