The Benefits of Off-Market CRE Properties
Over the years, off-market CRE deals have increased in popularity. The commercial real estate market can be competitive, but off-market properties have several benefits for CRE brokers and their clients. From less competition to the ability to connect directly with property owners, it can be a win-win for everyone involved. Learn more about the benefits of off-market CRE properties.
What Are Off-Market Properties?
Off-market commercial real estate deals are properties that meet your buyer’s criteria that you won’t find on a listing service, or more generally, every property in your market that meets your criteria, not just the ones listed for sale.
As a commercial real estate broker, you will come across the term “off-market” as it relates to properties, research, and transactions. Currently, there are more than 50 million commercial properties in the United States. At any given time roughly 1% are listed publicly for sale. Based on that, there is a significant amount of off-market properties available for you to set your sights on.
CRE Broker Benefits
Keep in mind that a property owner may be willing to sell even if the property is not listed publicly for sale. Knowing your local market, and all of the properties in your area, can be a distinct competitive advantage. As a CRE broker, your goal is to find the right property for your clients – even if that property is currently off-market. Reaching out to an off-market property owner puts you in the driver’s seat and reduces competition in the market.
Going after off-market properties means that you reach out to the owner before anyone else does. Even if the owner does not want to sell at that time, it gives you the opportunity to make the connection and get your foot in the door for future opportunities. Keep in mind that most owners would be willing to sell their properties for the right price, even if they were not considering it before you contacted them.
By searching for off-market properties, you open a much wider pool of potential properties that match your client’s search criteria. Based on your client’s ideal property type, location, size, and other distinctive features, you can identify target properties that you may have otherwise missed if you were only looking at publicly advertised properties.
Facts To Consider
When you have narrowed down the off-market properties that you are most interested in, you will need to do your homework to learn as much as you can about the property. When did the current owner purchase it? What was the purchase price? What improvements have been done to the property? How has the market changed since it was acquired? Is the property currently leased with long-term tenants, or are there vacancies? All of these facts will play a role in the current value of the property.
How To Find Off-Market Properties
LightBox has helped over 17,000 CRE brokers find off-market properties and win more deals. Their map-based real estate application, LandVision, allows you to conduct real estate analysis and easily identify property ownership information. With access to the current ownership portfolio, you can determine how active they are in the market and identify the types of properties they typically purchase. LandVision also allows you to search for parcels by property type, square footage, value, use, and much more! You can also view area demographics, traffic data, school zones and rankings, and nearby points of interest, as well as run a comp analysis to determine the fair market value.
Use Your CRM
At ClientLook, we are proud to offer the only all-in-one CRM made specifically for the commercial real estate industry. We understand off-market properties – and every other facet of your business. Stay organized, boost your productivity, and win more deals with ClientLook. Schedule a demo today to see how you can keep track of your properties, deals, contacts, tasks, and more with our CRM software.
Already a ClientLook subscriber? Request a free Success Audit to make sure you’re getting the most out of our features.