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 | Websitehttps://performancebrokerageservices.com/driving-performance-podcast/Performance Brokerage Services | Websitehttps://performancebrokerageservices.com/Performance Brokerage Services | LinkedInhttps://www.linkedin.com/company/performance-brokerage-servicesStephen Kay | LinkedInhttps://www.linkedin.com/in/stephen-kay-mai-4a389b7/Cushman & Wakefield | LinkedInhttps://www.linkedin.com/company/cushman-&-wakefield/Cushman & Wakefield | Website https://www.cushmanwakefield.comThanks for listening to Driving Performance. If you enjoyed this episode, please leave a 5-star review, and be sure to subscribe so you never miss any insightful conversations.#AutomotiveDealershipBrokers #CarDealership #AutomotiveIndustry

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