Off-Market Properties: How to Find Commercial Real Estate for Sale
A good proportion of commercial real estate transactions take place off-market. These transactions involve the sale of properties that are not publicly listed for sale. Such commercial real estate property trades’ hands with the general public not ever realizing it was available.
Why Would A Property Sell Off-Market?
There are many reasons a real estate investor may choose to sidestep publicly advertised properties. For one, fewer people are looking for off-market properties, meaning you don’t have to deal with an extensive pool of other interested buyers. These deals often move forward more easily as they’re based on already established relationships.
In some cases, property owners may not be actively trying to sell, but they may be open to the right offer. Still, a seller may prefer to keep a sale private for several reasons.
These might include:
- Less intrusion upon the operations of the asset
- On-market listings may present a risk to high-profile tenants’ businesses. They could result in speculations and unwanted attention on their operations
- No lowball offers as off-market investors usually have a particular asset type in mind when pursuing such deals
Off-market commercial investment opportunities are on many occasions sourced through word-of-mouth marketing and expert commercial real estate brokers. Only a few agents and investors know that a property is available. It’s this exclusivity that makes the process more rewarding and less stressful for buyers and sellers.
That said, these transactions can be something of an enigma for investors who have never been involved in off-market property sales.
How to Find Off-Market Commercial Investment Properties
Here are the most effective ways to find commercial real estate properties that are not on the market.
1. Engage a qualified commercial real estate broker
Experienced brokers usually have the “in” on the off-market commercial real estate market. A good broker doesn’t just focus on buyers; they also keep a list of potential sellers as well. For instance, they may have a list of owners who have previously expressed interest in selling or asked questions about selling in certain market conditions.
Look for a broker with an extensive network and who’s been in the industry long enough to know how commercial real estate deals are executed. Also, make sure they’re established and knowledgeable in the asset class and the neighborhood in which you’re looking to invest. For instance, if you’re looking for motel real estate, work with a broker with a demonstrated history of closing such real estate deals.
A qualified broker will not only help you find the right fit investment property, but they will also guide you through the negotiation process and ensure the deal goes through as seamlessly as possible.
2. Check off-market listing websites
There are websites dedicated to speculating on which properties may be up for sale. Some multiple listing services (MLS) provide a database of all the commercial real estate properties in a particular location. You can get information about the property, including its market value estimate. You can also obtain information about the current owner and tenants, and the current owner’s contact information.
Subscribing to an MLS may be costly, but these services can save you a great deal of time and effort.
3. Build professional relationships
Build an extensive network consisting of other investors, commercial real estate brokers, leasing agents, property lawyers, and even commercial bankers. These professionals often have their ear to the ground and help you get in touch with potential sellers.
The only downside to this approach is that it can take years to establish the right relationships. Nothing can take the place of networking, whether you’re doing it in-person or via social media. Taking the time to build these relationships is often incredibly rewarding and lucrative.
4. Market your interest
A simple but time-consuming way to find property for sale that’s not explicitly on the market is to put a word out that you’re interested in buying a property. Tactics such as cold calling are one of the better ways to get directly in touch with property owners. Make a list of properties that you like and start a conversation with their owners. Direct mail campaigns and email blasts to your contacts can also provide you with leads on properties likely to sell or even foreclose.
Foreclosures and bankruptcy are always going to be part of the commercial real estate industry. This means you can find great deals at auctions. It’s advisable to proceed with caution if you do decide to take this route, as you’re likely to encounter complications with the sale. That said, this could be a viable option if you’re open to the risk and have the necessary resources at the ready.
Want to Learn More? Get in Touch With Anthony Maccaroni Today
Finding sellers who prefer to remain anonymous comes with a multitude of challenges, whether you’re looking to invest in office, industrial, or hotel real estate. This is precisely why you should partner with an experienced broker.
A very large portion of commercial real estate analysis and transactions are now taking place off-market. Work with Tony Maccaroni to find motivated sellers and unlock great off-market commercial real estate opportunities in Pinellas and Clearwater, Florida.