In the world of commercial real estate, off-market opportunities are like buried treasure – you need to know where to look. This blog post will discuss off-market opportunities, their advantages, and how to uncover them.
What Are Off-Market Opportunities?
Off-market opportunities are transactions between a buyer and a seller without any public marketing of the property. These properties are not listed on major platforms like the MLS, RealNex, Crexi, LoopNet, or CoStar. Instead, a good broker can facilitate these deals privately between buyers and sellers. The potential advantages are that they can provide a hidden opportunity, negotiation flexibility, and discretion for all parties. However, such properties may only be available for a short time before they’re gone, so it’s important to be able to move quickly on any potential deals. The key to understanding off-market transactions is not purchasing properties “on sale” but rather just having the opportunity to see potential investments.
While many assume that off-market opportunities or listings only benefit buyers, they can actually be beneficial for sellers as well. This is especially true for sellers who may not want a public listing to advertise their property due to concerns about disrupting their business or turning customers away. Off-market listings allow these sellers to quietly market their property to a select group of pre-qualified, potential buyers without the need for public advertising. This can minimize disruption to their operations and help preserve existing relationships with customers and tenants. For example, if the property is a rental property, the seller may not want to inconvenience their tenants and cause them to look to relocate because of a potential sale. With an off-market listing, the seller can maintain confidentiality and avoid tenant concerns while still exploring potential offers from interested buyers. Off-market commercial real estate listings can provide sellers with more control and flexibility in the selling process while still attracting interested buyers.
Types of Off-Market Opportunities
Depending on the location and market conditions, off-market commercial real estate listings can include various property types. Here are a few types of CRE properties that are commonly found in off-market listings:
- Multifamily properties: These include apartment buildings, townhomes, manufactured home communities, and other types of residential, rented properties with multiple units.
- Industrial properties: These include warehouses, manufacturing facilities, distribution centers, and other commercial properties used for industrial purposes.
- Retail properties: These include shopping centers, strip malls, standalone retail spaces, and other types of commercial properties used for retail purposes.
- Office properties include office buildings, coworking spaces, and other types of commercial properties used for office purposes.
- Hotel properties include motels, and other lodging properties.
- Land: Vacant land or land with development potential may also be listed off-market to avoid publicity or due to other variables.
Why Do Off-Market Opportunities Exist?
There are a number of reasons why off-market commercial real estate opportunities occur. It could be that the seller is looking for privacy or can only transact without any public knowledge due to financial or legal reasons. It could also be a way for real estate brokers to exclusively offer properties to their private network of potential, pre-qualified buyers rather than go through a time-consuming and expensive public listing process which can be more harmful than helpful for both parties. An off-market deal is generally a mutually beneficial option for both the seller and the buyer.
The Role of Brokers in Uncovering Off-Market Opportunities
Brokers play a vital role in commercial real estate, especially in uncovering these off-market opportunities. Brokers have an insider’s knowledge of these properties and can uncover potential properties because they know owners that may be willing to sell in the right conditions. As a result, they can help match buyers with unique and hidden real estate opportunities. This allows buyers to access properties that may not be available to the public, giving them a competitive advantage and it can give a potential owner an option to sell a property they may not have considered selling. A skilled broker can help navigate qualified buyers through the complexities of off-market transactions, making the process smoother and more successful for everyone involved. In addition, with their expertise and network of contacts, brokers are an invaluable resource for those seeking to uncover off-market real estate properties.
“A year and a half ago, the market was on fire,” states Chuck Heller with Landmark Commercial Realty. “While off-market listings have always been around, they weren’t sought after as much as they are now. Sellers are realizing there are not as many offers as there used to be. The increase in interest rates has changed this. As a result, a great relationship with a commercial real estate (CRE) broker is now more important than ever. We can provide insights into the market, help you identify potential opportunities, and even connect you with other investors with access to off-market deals.”
How Landmark Can Help
In this post, we’ve highlighted the advantages of off-market opportunities and strategies for uncovering them for buyers and sellers. By partnering with a reputable broker, sellers can gain access to a network of qualified buyers without the need for public advertising. Landmark’s experienced brokers can guide you through the process and help you identify the right buyer who will appreciate the unique qualities of your property. Whether you’re buying or selling, start by working with an experienced broker like those at Landmark, who can guide you through the process and present options a casual buyer/seller would not have been able to consider.