I rent a Retail space in a high value small town, tourist destination for around $5,000/m, at 1,800 sq feet. I have a 3yr extendable to 6yr lease, at my discretion, but with a clause that says they can sell and consequently evict me at any time if they choose upon sale. They owe for another 6 or 7 years from owner financing on this property, at around 5%, so they might make around $30k/yr profit from my lease and owe $250k on this $1M+ property.
I asked the owner 18 months ago to sell to me and they said maybe in about 10 years they may be open to selling, so as far as I know they didn't plan to sell. I expressed to them that I wouldn't be able to do it right away and they said they'd offer me first right of refusal, but in a very casual (possibly non-committal) way. However in today's market we all know people are making decisions to sell their properties at what may be peak market, even though values in this town will not go down, it's growing every year with huge visitation. They also mentioned at that time that one of my business neighbors, who has been scooping up properties and has deep pockets, expressed interest and said he's an open buyer.
Yesterday, an appraiser showed up and did literally a 2 minute walk through of this simple one room 1,600 square ft space, (no equipment, just 4 walls and a restroom). Stunned, I asked in apprehension "are they selling?" He replied, "I don't think so, it seems like it may be a loan situation, maybe borrowing against the property." He didn't explain why he thought that, but seemed genuine enough, however without certainty. His business card says he is a Principal and "Certified General Appraiser" at a "Consulting, Research, and Valuation" Real Estate Advisors firm a few towns away. He acted like he was in a huge rush and barely took any photos that I noticed. He didn't ask to see the bath room (no shower), and waited for a few minutes to see the area behind the retail space, but I was busy with customers, so he left without looking. He asked "is it just storage behind that area?" I replied affirmative and he was gone.
Is there anything I can assume from the brevity of his visit, just being here a couple of minutes and not inspecting barely anything, not the Heating/Cooling, bathroom, lighting, electric panel, etc. I don't know if he went on the roof or not, it's accessed from the back of the building. I just couldn't believe he made an appraisal so quickly. It certainly would not have been a buyer's inspection or appraisal. It's right downtown and all the buildings are just stacked along the block, so valuation probably just goes by square foot and that's it, assuming no kitchen, etc. Perhaps for a bank loan, that's all they need and maybe they are only borrowing against 60% of it's value or something, where the bank isn't concerned if it's worth $1M or 1.2M.
They just bought a residence 2 years ago so I am near certain they are not buying a home (prices have doubled here and very very few on market). Perhaps they are buying another business, but they already own one successful one and it's near impossible to get employees here due to VRBO, few long term rentals available, etc. Average 1200 sq ft - 2,000 sq ft homes are $500-$700k. Their current business requires around 6 to 10 employees, so I'd also be surprised if they were asking for another staffing nightmare with another business. For their simple family lifestyle with 2 pre-teen kids, I don't think they are in any great need or ambition. He works full time and they are making at least $100k-$200k at the other business, along with $30k or so from my rental, after mortgage. So close to $200k+ income + asset of $1M+ property that is 75% paid for, and I'm paying it down further with my lease.
Our relationship is on very good, friendly standing and I pay rent 2 weeks early every month and never missed in 6 years. But we don't see each other and generally only talk when it's time to extend the lease every few years. I'm on my 6th year here.
Should I call her and ask if she's selling? That seems a bit demanding, and don't want to press her if it's just a false alarm. Text her? Is there a clever question I could ask in order to reveal their intentions? If they were selling, they almost certainly wouldn't let me know, as they'd be concerned I would leave early, as their last tenant did when they folded. I was considering saying "should I be expecting any more walk-throughs?"...indicating a possible buyer. These properties might also sell without an inspection though, as the neighbor knows the buildings well enough as they are joined. I would think any buyer would though. Any thoughts about my situation? Honestly did my best to make this as short as possible, going for 1 paragraph. There's just a lot of nuance as with any situation. It's impossible to find other rentals here, so I'm extremely concerned to lose my livelihood. Thanks!
