Maximizing the Value of Your Asset: A Guide to Crafting the Perfect OM

An offering memorandum (OM) for commercial real estate is a document that provides information about a property being offered for sale or lease.

It's used by real estate brokers or agents to present the property to potential buyers or tenants.

Offering memorandums (OMs) are typically used to market a wide range of commercial properties, including office buildings, retail spaces, industrial warehouses, multifamily apartments, and other types of income-generating properties.

The type of property that is best to showcase with an OM will depend on the target audience and the specific characteristics of the property. For example, an OM for an office building may highlight the property's location, accessibility, and amenities, while an OM for a retail space may focus on the property's visibility, foot traffic, and tenant mix.

Regardless of the type of property, an OM should provide detailed and accurate information about the property and its financial performance, as well as any relevant legal or environmental considerations. This can help potential buyers or tenants better understand the property and make an informed decision about whether to pursue it further.

The content of an OM for commercial real estate may vary depending on the specific property and the target audience, but it typically includes the following information:

1. Property description: This includes the location, size, and general characteristics of the property, as well as any notable features or amenities.
2. Financial information: This may include the current and projected income and expenses of the property, as well as any relevant financial data, such as cap rate or cash-on-cash return.
3. Marketing materials: This may include photographs, floor plans, and other materials that help showcase the property.
4. Legal considerations: The OM may include information about any legal restrictions or covenants that apply to the property, as well as any environmental or zoning issues that may affect its use.
5. Offering terms: This includes the terms of the sale or lease, such as the purchase price or rent, any contingencies or conditions that apply, and any closing or possession dates.
6. Disclaimer: The OM may include a disclaimer or risk warning, outlining the limitations of the information provided and reminding the reader that the information contained in the document is not intended to be exhaustive or definitive.

Before creating an offering memorandum (OM) for a commercial property, it is important to conduct thorough research to gather as much information as possible about the property and its market. Some steps you might take to do this research include:

1. Review the property's financial documents: This may include the current and past income and expense statements, as well as any relevant financial projections.
2. Analyze market data: Look at comparable properties in the area to get an idea of the current market conditions and trends, including rental rates, occupancy rates, and cap rates.
3. Gather property-specific data: Collect information about the property's physical characteristics, including its size, location, age, and any notable features or amenities.
4. Assess the property with a drone to create inspection reports, environmental forecast, or marketing materials.
5. Research legal and environmental considerations: This may include checking for any zoning restrictions or covenants that apply to the property, as well as any environmental issues that may affect its use or value.
6. Consult with experts: Depending on the complexity of the property, you may want to seek the advice of professionals, such as real estate attorneys, appraisers, or environmental consultants, to help you gather and interpret the necessary information.

By thoroughly researching the property and its market, you can create a more accurate and detailed OM that provides potential buyers or tenants with the information they need to make an informed decision about the property.

Want to outsource it? Here at Airweb Digital we specialize in maximizing the value of your asset through the use of:

- Aerial Photography

- Aerial Videography

- Photo/Video Editing

- Property Maps for Surveyor Review

- Roof/Facade/Solar Inspections (Visual and Thermal)

- Soft-Washing with Drones for Tall Buildings and Peak Roofs

Our unique advantage is that we have a robust network of certified drone pilots all across America that are equipped and experienced for these services. We have rapid response for flying on-site and can turn around deliverables in days rather than weeks vs. traditional workflows.

These services are curated for Commercial Real Estate Brokerage that are analyzing a deal or getting ready to sell a property.

Analyzing a deal:

If land: use a mapping drone to scan the property showing information vital to the estimation and construction process

If infrastructure: use a thermal or visual drone to capture heat loss potential, pavement damage, or roof/facade/solar damage

Preparing a property sale:

- Use a soft-washing drone for hotels, high pitch roofs, historical buildings, or offices for a cleaning that gets the most out of marketing content that follows.

- Capture aerial photos, videos, and edit all of that content for offering memorandums and advertising media.

Drones are used in each step of process and we believe this is just scratching the surface since we haven't covered the benefits during the construction process. Get a free quote on your property today >>