What is owner-occupied commercial real estate?
To meet the requirements for owner-occupied commercial real estate, the property owner must occupy 51% or more of the property, and a minimum of 51% of rent paid must come from the owner and/or guarantor, or affiliate of the owner.
These distinctions aren’t always clear since the property owner is often an LLC. The property can be owned by an LLC that is a different entity than the business. As long as the operating business leases from the LLC, and the operating entity and the LLC are under the same owners, the property would be considered owner-occupied. But there must be a direct connection between the two entities and ownership. The majority of business owners who own their real estate use an LLC to own the property.
Using Reonomy to find Owner-Occupied Properties
In Reonomy, it is very simple to search by owner-occupied properties. Simply use the search bar to target your area of search and building criteria. Filters are used to yield a granular search. Conduct a search as you normally would in Reonomy looking for buildings with relevant search criteria.
Then, isolate your search further to owner-occupied properties within the Ownership search tab in Reonomy. Simply use the drop-down menu to select ‘Yes’ under the Owner Occupied section.
Example search for owner-occupied properties in Austin, TX
Searching for owner-occupied properties in Austin. Set search filter for Austin, TX and select Asset Type for All Office.
Then filter further by building level data. We want to search properties that have been built in the last 25 years. So we set the year built range from 1993 to today.
We can also filter by date of last sale. We can filter for all buildings that have not sold in the last 10 years.
Then we can apply our ownership filter. In the owner-occupied drop-down filter, select yes and apply the search.
We can see that all of these filters led to a very specific search returning 5 relevant owner-occupied properties. On the left-hand side, you can see all of the properties that fit all of your specified criteria. You can then click into each of the properties individually and get ownership information and specific building level data, or you can export all of the buildings and owners into an excel sheet using the bulk export feature.
Want to start searching owner-occupied properties? Sign up for your Free Trial of Reonomy today.