When it comes to commercial real estate, everybody is looking for a great deal, but what if the best deal wasn’t actually on the public market? Off-market properties are becoming a growing trend in commercial real estate because they have unique advantages for buyers and sellers alike. However, the process can be intricate, with more moving parts than a traditional commercial property sale, and that is why a commercial investment properties firm may be better positioned to facilitate these transactions.
What Are Off-Market Properties?
Off-market properties are those that are being or have been sold without a public listing or advertisement. An off-market buy or sale can be a result of simply being in the right place at the right time or due to the knowledge of an industry expert who is in the know. Since these transactions typically happen outside of the public eye, it can take longer to find a property and execute a purchase.
Both buyers and sellers of off-market properties can expect a more involved process than publicly bought and sold properties. Attorneys and investment firms typically facilitate the process, which may slightly extend the amount of time required to complete a transaction but can result in an advantageous deal for all parties involved.
Advantages of Buying and Selling Off-Market Properties
When millions and millions of people utilize public listings each year, it can seem odd for a seller or buyer to prefer to handle a property off-market. In reality, there are three primary advantages for off-market property sales and purchases:
Getting top dollar
Just like in residential real estate, the longer a commercial property sits on the market without selling, the more the property’s value can go down. By keeping a property off the market, a seller does not have to worry about it losing value.
Records of a public sale are often a matter of public record. For those buyers and sellers who wish to maintain a sense of privacy, an off-market property purchase or sale can deliver.
Selective target markets
In some cases, a seller may choose to attract potential buyers who do not want the headaches and back and forth of competing for a publicly listed property.
How to Find Off-Market Properties
Since off-market properties are not publicly listed, it stands to reason that they can be much harder to find if you don’t know where to look. The top ways to find off-market properties are:
Put the word out
Sometimes a great deal can be made just by being in the right place at the right time. Let it be known among industry networking contacts that you might be interested in buying or selling and let word of mouth take it from there.
Conduct online research
If searching for off-market properties, don’t expect them to come back as a batch of search results in response to search engine query. However, there are a handful of reputable specialized websites that can facilitate the online buying or selling of off-market properties.
Work with a commercial investment properties firm
Commercial property investment is the firm’s business, so you can expect them to be a fantastic source of information regarding off-market properties and negotiations.
What to Look for In A Commercial Investment Firm
Being successful with off-market purchases requires a reputable commercial investment firm who understands the ins and outs of this facet of the real estate market. Some considerations for choosing the right commercial investment firm for your specific needs should include:
Knowledge of geography
Look for a firm who has been and continues to be part of the city in which you hope to buy or sell. With local industry contacts, the staff will be invaluable in finding off-market property opportunities since they already know the area intimately.
Some firms are content to simply brokerage a service, but an optimal candidate will also invest in commercial real estate opportunities themselves. This philosophy shows that the firm understands the importance of buying and selling as well as how to best accommodate their clients.
Ownership and brokerage services
Select a company who has brokered and owned property. This can tell a potential client quite a bit about how long the company has been in business and what they have accomplished during that time.
A one stop shop
To make the entire process a one and done experience, choose a firm that can help with property, loan, and cash flow issues related to buying and selling off-market properties.
If you are interested in selling or purchasing off-market properties or have questions about the process surrounding it, please reach out to Sanmore Investments LLC to see how we might be able to help.