Your tenant is leaving: sell the building or lease it again?
A tenant’s notice starts a clock. A building is often easier to show and market while the tenant is still in it, and each empty month after that costs taxes, insurance and upkeep with no rent coming in.
Price both paths before the tenant moves out. Selling vacant usually means selling to a business that will use the building itself, and those buyers pay for location and fit rather than income. Leasing it again usually means some downtime, and often free rent, improvements and commissions before the new rent pays them back, and the building then sells to investors on that new lease. Compare the vacant sale price with the leased value minus what it takes to get there. Owners who start the day notice arrives keep the most choices.
What to do in the months after notice
Most of the money in this decision is made or lost before the space is empty.
| When | What to do | Why |
|---|---|---|
| Notice arrives | Get the move-out date, the condition the lease requires and the plan for returning the keys in writing. | Restoration and removal duties are in the lease, and the tenant is easiest to hold to them before they leave. |
| The same month | Get a sale price and a lease rate for the building as it will be when empty. | You can’t compare the two paths without both numbers. |
| While the tenant is in | Market the space or the building, with showings on notice as the lease allows. | An occupied space often shows better, and the search runs while rent still comes in. |
| Move-out | Walk the space with the tenant and check its condition against the lease’s surrender terms. | Damage and unremoved fixtures are easier to resolve before the deposit is returned. |
| After move-out | Keep the utilities, insurance and snow and lawn service in your name; check the space weekly. | Vacant buildings need their own insurance terms, and an empty space hides problems. |
Selling vacant versus leasing it again
Two different buyers, two different ways of pricing the same building.
| Sell vacant | Lease it again, then sell or hold | |
|---|---|---|
| Who buys | A business that will use the building, or an investor who plans to lease it | An investor buying the new lease’s income |
| How they price it | Location, size, condition and what it would cost to rent or build elsewhere | The new rent, the term, the tenant’s strength, and a cap rate |
| What it costs you first | Taxes, insurance and upkeep until closing | Carrying costs during the downtime, plus any free rent, improvements and leasing commissions |
| Time to cash | Lake County sellers reported a median of about 6 months on the market before selling (sales over $1 million, year to June 2026), then the time to close | The lease-up, then a sale on top of it if you sell |
| The risk | Pricing to the right buyer pool | Picking the wrong tenant, or the space sitting empty longer than planned |
What an empty building costs while it waits
When the rent stops, the bills don’t.
Property taxes
Lake County industrial buildings carry a median computed tax of about $2.05 per square foot a year. At that median, a 10,000 SF building would carry about $20,500 a year in tax alone; your bill depends on the building and town. See the Lake County commercial property tax index for your town.
Insurance, utilities and upkeep
A vacant building still needs heat, insurance and exterior care. Ask your insurer early: many policies limit coverage after a building sits vacant for a set period.
The cost of the next tenant
Free rent is income you give up, and the improvements a tenant asks for and the leasing commission are paid up front. Add those costs to the carrying costs while the space sits empty.
Your loan
If the building is financed, read the loan documents for occupancy or income tests. A vacancy can matter to the lender before it shows up in your bank account.
Buyers and tenants already searching
A vacant building’s best buyer is often a business that wants to own instead of rent.
Live demand
Right now I represent 9 active buyers and 21 active tenants looking for buildings and space in Lake County and the north suburbs. Each one is a real, current search, posted without the client’s name: see tenants looking for space and buyers looking for buildings.
Owner-users
Businesses buying for their own use often buy with a small down payment through SBA loans, and they compare the price with what they pay in rent. A building that fits their size and use can sell well without a tenant.
Investors
Investors buy income. A short or below-market lease can hold the price down, which is why some owners sell vacant rather than sign the first tenant that comes along. More on that choice: sell vacant or leased.
An example
A Libertyville building sat empty after losing a day care and then its other tenants. I sold it for $360,000 to a business that runs a sleep-study operation there. Read the Peterson Rd case study.
Questions that change the answer
Selling may suit one owner; leasing it again may suit another.
Do you want to keep owning real estate?
If you would rather own something passive, a sale set up as a 1031 exchange before closing can move the value into a different property. See 1031 replacement property in Lake County.
Are you stepping back?
Owners near retirement often weigh selling now, exchanging, or holding. See retiring from being a landlord.
What does the market pay in rent for this space?
Rent sets both the lease path and the leased value. See Lake County commercial rent.
Who should the next tenant be?
If you lease again, check the tenant’s proposed use, credit and required approvals before you sign. See what landlords should ask before accepting a tenant.
Common questions
Should I sell before or after my tenant moves out?
Start before. You can market the building while the tenant is still paying rent and close after they leave. An occupied space often shows better, and starting early can shorten the time the building sits empty.
Can I show the space while my tenant is still there?
Usually, if the lease allows showings on notice; many leases do near the end of the term. Read the clause, give the notice it requires, and work around the tenant’s business.
Does a vacant building sell for less than a leased one?
Not necessarily. A business buying for its own use may pay more for an empty building than an investor would pay for one with a short or below-market lease. It depends on the building, the lease and who is buying.
What does my tenant owe me when they leave?
What the lease says: usually the space in the condition the lease describes, with the tenant’s fixtures removed. Walk the space and check its condition against those terms before the move-out date.
Tenant leaving? Get both numbers.
Tell me the building and the move-out date. I’ll give you a sale price and a lease rate for the empty building, and tell you which buyers and tenants are already looking.
Jason Bitton is a commercial real estate broker with RE/MAX Commercial in Libertyville, IL — #1 RE/MAX Commercial Broker in Illinois (2022, 2024, 2025) — serving Lake County, the North Shore, the O’Hare corridor, and the Chicago suburbs.