selling property and negotiating leases - is this an acceptable practice
I've asked a few questions about a building that I've inherited from my Uncle.  The property is located about an hour from where I live and while I've tried to make it work, it is really a hassle for me anytime something needs to be done and due to the remaining note on the property, I can't justify a property manager. 

I am going to list the property for sale soon.  I also have a vacancy in the building that I'd like to fill but haven't listed yet.  Is it ok to list the space and get a commitment on the lease and then sell the building?  My attorney assures me that leases convey to the new owner and it would make the property much more attractive for purchase if it is full of quality leases/tenants.  I don't want to do anything that would border on unethical with a new tenant and I don't know how this works. 

Thanks,

Dave
[{"id": "glwgn9x", "text": "Yes, leases transfer. Make sure a reputable broker and real estate attorney prepare the lease.", "replies": [{"id": "glwhha4", "text": "Thanks.  Definitely using an attorney familiar with real estate.  Would it be considered questionable on my part if I get a new tenant and then list the building shortly after or is that a non issue since the lease conveys?", "replies": [{"id": "glwhma5", "text": "No, that\u2019s fine.", "replies": [], "depth": 3}, {"id": "glxmurn", "text": "That\u2019s okay and in fact would probably help your sale value. Buyers often prefer buildings that are at capacity and therefore have a known income (and subsequently a known cap rate).", "replies": [{"id": "glxoky1", "text": "Thanks.  What about the tenant?  I don't want to do something iffy with them.  Is that a bad look to sign them to a lease and sell the building.", "replies": [{"id": "glxp7a1", "text": "No I don\u2019t think so. As mentioned in other parts of the thread, leases are transferable and terms stay the same. You can always tell the tenant and say \u201chey, just so you know, I am intending to sell the building, but your lease would stay intact.\u201d You can also choose who the seller is, so if you\u2019re concerned about tenants being able to exercise a renewal option but you know a potential buyer wants to level or gut the building then you can choose to not sell to that particular buyer. There are also protections for tenants you can put in place, such as making renewal terms subject to the buyer exercising the right to renew rather than a mutual agreement.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "glwtjtr", "text": "Yes. Filled leases will look more attractive in most cases.", "replies": [{"id": "glx44ro", "text": "Thanks.  I will only fill it at market rate, etc...  I just don't want to look unethical by signing a lease and selling a month or two down the road.", "replies": [{"id": "glx4djk", "text": "I wouldn\u2019t worry about that. You\u2019re almost providing a service for them by filling the lease so they don\u2019t have to expend their resources to do so. Like I said though, most cases. There are always the random outliers who are just looking for something to not like.", "replies": [{"id": "glx4ztq", "text": "Thank you.  I was thinking more towards unethical by the tenant not the new owner.  This has been quite the learning process for me and I am trying to get it right all the way around.", "replies": [{"id": "glx5ksl", "text": "Ah, I see what you mean. You can always be up front with a potential lessee about an upcoming sale. A lot of them will find comfort in their lease holds as, contractually, nothing will change other than a lessor/lessee relationship.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "glwz9d7", "text": "Where\u2019s your property, what are you asking for it?", "replies": [{"id": "glx41kp", "text": "Central PA, not known yet.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gly3u24", "text": "Definitely secure a new tenant before selling. If you don't, an investor will use the opportunity to buy it at a discount (because there is less NOI), backfill the vacancy and sell to a 1031 investor with a new lease in place. A lease is most valuable the moment it's signed. \n\nThis is absolutely fine and a wise decision on your part to increase the value before selling.", "replies": [], "depth": 1}]