As an expert who’s been valuing dealership properties for more than 30 years, Stephen Kay of Cushman & Wakefield understands the often-overlooked impact of real estate on deal structure and business value. In this conversation, he outlines the most common missteps dealers make when preparing for a sale and shares strategies for mitigating risk, protecting cash flow, and maximizing value.

Key Takeaways:

(05:25) The biggest mistake dealers make is negotiating business and real estate separately.

(06:58) Real estate should be evaluated first to model rent and business cash flow accurately.

(09:39) Image compliance can require major investment — even if the building is new.

(11:52) Holding real estate post-sale? Plan for a minimum 10-year lease term.

(14:34) As leases mature, tenants gain leverage and may push landlords into unfavorable terms.

(17:16) A phase 1 environmental assessment can prevent delays and failed closings.

(21:20) Overvalued expectations for non-compliant facilities can derail a deal late in the process.

(23:47) Dealers often don’t realize how much of their wealth is tied to a single real estate asset.

(32:34) Explore land use changes that could increase property value beyond dealership operations.

Resources Mentioned:

Driving Performance | Website

https://performancebrokerageservices.com/driving-performance-podcast/

Performance Brokerage Services | Website

https://performancebrokerageservices.com/

Performance Brokerage Services | LinkedIn

https://www.linkedin.com/company/performance-brokerage-services

Stephen Kay | LinkedIn

https://www.linkedin.com/in/stephen-kay-mai-4a389b7/

Cushman & Wakefield | LinkedIn

https://www.linkedin.com/company/cushman-&-wakefield/

Cushman & Wakefield | Website

https://www.cushmanwakefield.com

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