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Retail & Storefronts FSBO Guide

Strip malls, standalone shops, restaurants, and street-level retail sold direct by owner.

5.5%–8.5%

Typical Cap Rate

1,000–25,000 sq ft

Typical Size

4%–6%

Broker Commission Saved

Overview

Retail commercial property includes everything from a single-tenant fast-food building to a multi-tenant strip center. FSBO sales are common when an owner-operator is exiting the business and selling the real estate simultaneously, or when a landlord sells a leased retail space to an investor.

How to Sell Retail & Storefronts By Owner

Value Your Property

Research comparable sales and apply market cap rates. Retail & Storefronts typically trades at 5.5%–8.5%.

Prepare an Offering Memorandum

Create a professional OM with financials, photos, and key property data.

List on LoopNet & Crexi

Publish on the two largest commercial marketplaces to reach qualified buyers.

Negotiate & Sign an LOI

Exchange a Letter of Intent with the buyer to agree on price and major terms.

Due Diligence & Close

Allow 30–60 days for the buyer to complete due diligence, then close with an attorney or title company.

Key Due Diligence for Retail & Storefronts

Buyers will typically request the following during the 30–60 day due diligence period:

1Tenant rent roll, lease terms, and renewal options
2Net Operating Income (NOI) and expense history (3 years minimum)
3Environmental review and ADA compliance
4Zoning confirmation and permitted retail uses
5Anchor tenant co-tenancy clauses and exclusivity provisions
6Traffic counts, parking ratios, and ingress/egress rights

Full due diligence checklist for commercial FSBO →

Who Buys Retail & Storefronts?

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1031 exchange investors seeking stable NNN income

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Owner-operators buying their own storefront

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Private equity and REIT buyers for larger strip centers

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Local retail investors building a portfolio

Tax Strategy

Consider a 1031 Exchange

Selling retail & storefronts with capital gains? A 1031 exchange lets you defer both federal and state taxes by reinvesting in like-kind commercial property. You must engage a Qualified Intermediary before closing and identify replacement property within 45 days.

Learn About 1031 Exchanges Find a Qualified Intermediary ↗

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Recommended Tools & Services

LoopNet

Top Listing Site

The largest commercial real estate marketplace. List your property for sale or find available storefronts, office, and industrial space.

Browse LoopNet ↗

Crexi

Fast Growing

Crexi is a modern commercial marketplace with powerful analytics. Great for sellers wanting data-driven pricing and broad buyer reach.

Try Crexi ↗

1031 Exchange Corp

Tax Strategy

Defer capital gains taxes by reinvesting proceeds into a like-kind commercial property. Speak with a qualified intermediary before closing.

Find a QI ↗

Rocket Lawyer

Legal Docs

Commercial purchase agreements, letters of intent, lease agreements, and NDA templates — reviewed by attorneys at a fraction of the cost.

Get Legal Docs ↗

CCIM Institute

Education

The most recognized commercial real estate investment credential. CCIM-designated professionals lead the industry in commercial transactions.

CCIM Institute ↗

Frequently Asked Questions

Can I sell retail & storefronts by owner without a broker?▼

Yes. Property owners have the legal right to sell retail & storefronts without a licensed broker in all 50 states. Commercial transactions between sophisticated parties are specifically designed for direct negotiation. Saving a 4%–6% broker commission on a commercial property sale is a significant financial benefit.

What is a typical cap rate for retail & storefronts?▼

Retail & Storefronts typically trades at cap rates of 5.5%–8.5%. Cap rates vary significantly by market, location, lease terms, and property condition. Lower cap rates indicate lower perceived risk and higher demand markets. Always verify current market cap rates with recent comparable sales in your submarket.

What due diligence should a buyer perform on retail & storefronts?▼

Standard due diligence for retail & storefronts includes: Tenant rent roll, lease terms, and renewal options; Net Operating Income (NOI) and expense history (3 years minimum); Environmental review and ADA compliance; and more. A typical commercial due diligence period runs 30–60 days.

Who are the typical buyers of retail & storefronts?▼

Common buyers of retail & storefronts include: 1031 exchange investors seeking stable NNN income, Owner-operators buying their own storefront, Private equity and REIT buyers for larger strip centers, Local retail investors building a portfolio. Marketing directly to these buyer types through LoopNet and Crexi maximizes exposure.

Should I do a 1031 exchange when selling retail & storefronts?▼

If you have capital gains on the sale of retail & storefronts, a 1031 exchange lets you defer federal (and often state) capital gains taxes by reinvesting proceeds into like-kind commercial property. You must identify replacement property within 45 days and close within 180 days of your sale. Engage a Qualified Intermediary before closing — you cannot touch the proceeds.

Other Property Types

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Office Buildings

6.0%–9.0%

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Industrial & Flex Space

5.5%–8.0%

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Multifamily (2–20 Units)

5.0%–8.0%

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Mixed-Use Properties

5.0%–7.5%

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Commercial Land

N/A (land)

Disclaimer: Cap rate ranges and market data are general estimates for informational purposes only. Actual values vary by location, property condition, and market conditions. Always consult a licensed commercial appraiser, broker, and attorney before making real estate decisions. See our full disclaimer.