If you are in the market for mixed use real estate, you are certainly not alone.
The popularity of the asset class with CRE investors and businesses has increased dramatically in recent years due to its flexibility and appeal to a wide range of tenants and visitors.
In this article, we’re going to show you how to find mixed use properties in any market. Read on to learn more.
How to Find Mixed Use Properties
To find the ideal mixed use property for your needs, your can either search through the available listings offered for sale on various online marketplaces, or you can take a more analytical approach and research the entire off-market inventory through a platform such as Reonomy.
On-Market vs. Off-Market Mixed Use Properties
On-market properties are actively marketed for sale through various channels either by the owner or the agent hired to help with the sale of the asset.
Off-market properties on the other hand, are all properties that are not actively listed for sale. They constitute a much larger pool of real estate.
While this may surprise some, in today’s transactional market a very large number of deals are conducted off market. But what’s the reason behind the newfound popularity of off-market sales?
When conducting deals off market, you can avoid paying additional fees to middlemen and minimize the number of people involved in a transaction. Not to mention, you could potentially make an offer on any property in your market of choice.
Platforms like Reonomy compile property and ownership information on both on and off-market properties across the nation, creating one of the most robust databases you can use to source new mixed property deals.
Find Mixed Use Properties for Sale
Most people looking for a mixed use property will typically visit one of the more popular online marketplaces to begin their search and compare pricing of assets in the location of their interest.
There are plenty of real estate listings platforms to choose from, however not all of them offer specific search filters for mixed use assets.
It is worth mentioning that both commercial and residential platforms may feature mixed use property listings. In most cases, using a combination of these services in your search will give you the most versatile results.
Let’s look at a couple of examples.
LoopNet does not have a stand-alone filter for “mixed use,” however the Advanced Search menu allows you to search for a number of specific types of mixed use properties throughout the United States.
For example, you can search for property sub-types such as office/storefront retail, office/residential, storefront retail/residential, industrial live/work, and more.
Another popular commercial listings platform, CREXi actually features a mixed use property filter in its main search options.
If you select “Mixed Use” as the property type you are looking for, you will see mixed use assets of any kind in your results.
If you would like to explore a more robust list of listing services in addition to LoopNet and CREXi, you can review our guide to commercial real estate platforms.
Find Mixed Use Properties in Any Market With Reonomy
If you would like to search for properties both on and off-market and be able to get in touch with property owners directly, you can use Reonomy.
By combining Reonomy’s robust property search with analysis of the data you discover, you can find potential buyers and sellers of mixed use properties before they decide to take action.
Searching for Mixed Use Properties
You no longer have to waste valuable time taking trips to your local county recorder or assessor’s office to look for property ownership information.
With Reonomy, you can now search for commercial property records nationwide quickly and efficiently, all in one place.
There are several different ways you can approach the search process on the platform.
Search by Geography
When starting your property search, you’ll likely want to add a level of geographic filters. You can search specifically for properties in any state, city, county, zip code, and neighborhood. You can also search by street name or exact address.
Search by “Mixed Use” Asset Class and Sub-Classes
Next, you can filter your search only for properties of a specific classification.
In the Asset Type tab of Reonomy’s web app, you can select filters for a number of different mixed use sub-classes, or simply search for “All Mixed Use” properties.
Further physical qualifications that you can add to your search are located in the Building and Lot tab. Available filters include building and lot size, whether the property is in an Opportunity Zone, the year the building was constructed, and more.
Search by Sales History and Debt History
By adding sales and debt history filters, you can identify mixed use properties that are more likely to sell.
Under the Sales tab, you’ll find filters for “most recent sale date” and “most recent sale price.” Applying these filters allows you to search for properties that have or have not been sold in a certain time frame or within a certain price range.
For example, by searching for assets that have not changed hands in the last 5 or 10 years, you can identify owners that are much more likely to be interested in selling their mixed use property.
Available mortgage and lender filters under the Debt tab include most recent mortgage amount, mortgage maturity date, mortgage origination date, and most recent lender.
Mixed use real estate investors may also be interested in searching only for properties that are currently in pre-foreclosure. There are a few pre-foreclosure filters they can use including final judgement, Lis Pendens, and notice of default. Another available option here is the ability to search by date of auction.
Search by Tenant Name or Tenant Type
When looking at retail and office properties, knowing who the tenants are can be incredibly important.
In the Tenant tab of Reonomy’s web app, you can search for properties based on tenant name (for example “CVS”) or tenant type. Tenant types can be searched by NAICS or SIC codes (for example Convenience Stores, Marketing Consulting Services, or Full-Service Restaurants).
Find Mixed Use Property Owner and Tenant Contact Information
Once you narrow down a list of target mixed use properties with the help of the filters we discussed this far, you can quickly begin exploring each asset in more detail, including accessing the owner and tenant names, and their contact information.
You can find these details by clicking into a property’s profile page and visiting the Ownership tab. Here you will be able to see the reported owning entity, which could be an individual, investment group, or an LLC.
Furthermore, you’ll be able to see the contact information of the individual people associated with the property ownership, included those that are members of an owning LLC.
If you move over to the Tenant tab, you’ll see a list of all current property tenants, along with the contact information of decision-makers.
While you are viewing the ownership details, you can click the name of the owner to gain access to their full property portfolio.
Ownership records can be very helpful in understanding the current owner’s motivation and intent towards the property. With these invaluable insights in hand, you can build a hyper-targeted pitch and reach out to these mixed use property owners with confidence.
Build a Mixed Use Property Owner List
As we have illustrated so far, Reonomy allows you to create lead lists that are relevant and specific to you.
One of the benefits of creating a lead list limited to your specific location and property characteristics requirements is not only the efficiency of having to reach out to fewer, pre-qualified owners, but also the ability to create personalized messages.
Additionally, based on the owner portfolio or specific mixed use asset, you may choose whether to directly call, email, or mail each decision maker on your lead list.
It is also worth mentioning that if you’ve identified multiple prospect owners that you’d like to connect with, you can export your lead list to an Excel spreadsheet or a CSV file for flexible use.
Let’s also look a bit more specifically at some of the granular benefits of searching for mixed use properties off market.
The Benefits of Sourcing a Mixed Use Deal Off Market
One benefit of off-market dealmaking is that you are likely the first person to reach out to the property owner.
If the owner has not listed the property, they are likely not actively looking to sell. This does not mean however that the owner wouldn’t be open to the idea of a sale—after all, every asset has its price.
This doesn’t necessarily imply that you’ll overpay for the property, as you’ll be saving on broker commissions and other servicing fees associated with using an agent. You very well may be able to offer the owner more than what they would make on the market, while still getting a favorable deal for yourself.
When looking for off-market properties, you simply have more flexibility.
By using a tool like Reonomy, you have the ability to look at every property in the area of your interest, rather than just specific assets currently listed for sale.
Additionally, you have the opportunity to contact mixed use property owners directly and cut down the time it takes to make a deal happen.
If you’d like to start sourcing mixed use property deals and connecting with owners off market, Reonomy might just be able to help you out.