The meaning and value of off-market, and how to find off-market properties.
A very large portion of commercial real estate transactions are now being conducted off-market. It’s a phenomenon gaining a ton of momentum across the industry, and with very good reason.
Below, we’ll be looking at what it means for a property to be off-market, how to search for properties off-market, and the many benefits that come along with doing so.
Included in this Page:
- What are Off-Market Properties? ⇨
- The Benefits of Searching Off-Market ⇨
- How to Find Off-Market Properties ⇨
- How to Find and Connect with Off-Market Property Owners ⇨
What are Off-Market Properties?
Before jumping into how to search and find off-market properties and owners, it’s important to understand what it actually means for a property to be off the market.
Plain and simply, off-market properties are those that are not publicly listed for sale. A synonym could be “unlisted properties.”
Given the fact that only a certain amount of properties are ever listed for sale, the pool of off-market properties is substantially larger. More so, without the involvement of third-parties, this massive pool of off-market properties is much more open to search through.
With a bit of industry expertise and a tool like Reonomy, you can analyze off-market properties in any location, on a very broad, or very granular level—whichever you prefer.
Off-Market vs. On-Market
Sometimes, the easiest way to define the meaning of off-market is to define what it’s not.
On-market properties are those publicly listed for sale. They’re usually advertised on real estate listings platforms, and are listed by an owner or broker at a particular price point.
The largest commercial property listing platforms typically won’t have more than a few-hundred thousand listings at one time, however.
With more than 50 million commercial properties in the US, it’s safe to say that even the largest listings platforms have at best 1% of the total supply of commercial and multifamily properties nationwide.
Now, consider how many properties are on listings platforms, and then consider the fact that off-market properties are all other properties—an incredibly sizable pool of properties.
“Off-Market Properties for Sale”
One of the biggest misconceptions with regards to off-market properties is that they’re actively for sale, but simply not listed. With Reonomy, that’s actually untrue.
While an off-market property owner may be very willing to sell, they may not be actively trying to sell. They’re approachable, but not eager.
In fact, many off-market properties will not sell, nor would the owner consider selling. The world of off-market deal-making is an open playing field where deals have to be sought out on behalf of the buyer.
So then, why bother searching off-market?
There are quite a few reasons to search off-market, all of which benefit property buyers in big ways.
The Benefits of Searching Off-Market
Searching off-market means that you approach a potential seller before they list a property for sale.
They may have it in mind that they’re looking to sell, or may have no plans of selling anytime soon.
Either way, the property owner has the potential to sell their own property, and you have the potential to convince them to sell it. After all, if one thing is for certain in commercial real estate, it’s that every asset has its price.
When searching on the market, if a buyer is interested in purchasing the property, they’ll have to haggle based on the listing price, and will communicate through an associated broker.
There’s complete freedom and customizability when it comes to searching off-market, however, which leads to many benefits for buyers.
Access to Unlimited Properties
Don’t limit your property search only to what’s available on the market. With such high levels of data and information accessibility, there’s no longer any reason to do so.
Reonomy has taken the meaning of off-market to new levels by creating a platform where no property is off-limits.
The idea? Just because a property is being listed publicly doesn’t mean its property and ownership details cannot be searched off-market (more on that later).
Using Reonomy allows you to grasp the full potential of off-market properties, while sourcing properties that fit into your exact investment specifications.
It’s good to use listings services to identify target properties, or what your target property should look like. You can use these platforms to understand market values, and compare properties for sale to the full universe of properties on Reonomy to validate what a fair deal would look like.
Accessing off-market properties on Reonomy means accessing the entire supply of U.S. commercial properties. Your investment search becomes almost limitless.
Since listed properties are limited, the amount of eyes on each property can become overabundant—especially when it comes to commercial properties.
Searching and sourcing deals off-market also allows you to avoid the competition of other buyers. This rids of competition-driven price hikes, while also giving you more freedom in negotiating a selling price.
Save Money on Fees
Without the need of a third-party, you’ll also be able to avoid broker fees and other fees that come along with buying a commercial property.
Mass-marketed listings regularly command a premium of 30% compared to off-market, which is the equivalent of a down payment.
Striking a deal off-market allows you to save quite a bit on an investment, while still paying an owner a price that they desire.
Better Understand Property Owners
Another perk that comes along with finding properties off-market is the ability to control what you see with regards to any single property and its owner.
When going through listings and a broker, a property is being advertised, and therefore the information you’ll be privy to with regards to that property will be limited and purely positive.
Searching off-market is completely open, and therefore gives you complete freedom and customization over the properties you find, but also over the information you choose to analyze on those properties. This is customizability at its finest.
Ownership details and portfolios are readily available on Reonomy. You can take your off-market search one level further to understand the fine details of an owner’s portfolio and individual properties to prepare for eventually reaching out to them.
There are various data points on any property that you can analyze to better understand individual owners before reaching out to them.
Property sales records, for example, show what the current owner paid for the property and when they purchased the property. What the owner paid for the property is a factor to consider when inferring what the owner expects now.
How long the owner has held the property for can signal whether they would sell the property. If approaching the property owner, this information equips you to tailor your pitch to them.
Connect and Negotiate Directly with Property Owners
Use the benefit of avoiding broker fees as well as contact information from Reonomy to negotiate directly with owners. Connecting with an owner directly can benefit all parties involved.
With Reonomy, you have access to property owner contact information, allowing you to reach out directly with a customized, informed message that’ll impress an owner from the start.
How to Find Off-Market Properties
Reonomy is the largest database of off-market listings in the nation.
Identify the opportunities that fit your preferred criteria with hundreds of applicable search filters. Search through more than 50 million off-market properties to find the best opportunity for you.
Begin your parcel research by searching unlisted properties by location, asset type, building and lot size, and more.
Reonomy actually takes the idea of off-market a step further by giving you access to the entire supply of commercial properties nationwide.
While some properties are being sold publicly, that doesn’t mean the building-level and ownership details of those properties cannot be accessed off-market.
Search Properties by Location
You can also select a radius on the map to search for any properties within a particular distance from a single location. Or use the draw tool to identify a specific neighborhood or target multiple specific areas within the map.
Search Properties by Asset Type
Looking for all multifamily properties in Texas? Filter your search quickly and easily. Add filters by state, county, or zip, along with various levels of multifamily property filters. Search everything from duplexes, to mobile home parks, to student housing.
Search as specifically as “gas stations,” or as broadly as “all industrial properties.”
Search Properties by Building and Lot Characteristics
Perhaps you’re a roofer looking for a property with a specific building size. Maybe you’re a repair company looking for older properties. Maybe you’re an investor looking for an apartment building with a certain number of units.
Whatever the case may be, you can filter your off-market property search by your preferred building and lot size and age.
Search Properties by Sales History
Filter your searches by properties sold within a particular time period, or that haven’t been sold in decades.
It is easy to filter for properties that have not transacted in 5, 10, or more years. Identify groups of properties with specific sales history criteria, of a specific asset type, in any market, in a matter of seconds.
Search Properties by Debt History
Uncover mortgage information on any commercial property nationwide, including mortgage origination and maturity dates, most recent mortgage amount, and most recent lender. Dive in even further to analyze full lender portfolios.
Filter for properties from a specific lender, or that have an origination date that is likely coming to term in the next year. Use your insights as a commercial mortgage broker or lender to filter searches to best identify opportunities.
Owner Portfolio Search
Ownership portfolio information is easily accessible and searchable when using Reonomy.
If there is a particular owner you are interested in working with, identify new opportunities through an ownership portfolio search. Uncover property details on any off-market property an owner may be associated with.
Search Properties in Opportunity Zones
When searching off-market properties on Reonomy, you can also filter based on whether or not a property is located within an Opportunity Zone. You can also see whether an existing property of interest is within an Opp Zone, assuring that you’re getting the most out of a potential investment.
How to Find and Connect with Off-Market Property Owners
While it’s great to be able to search and find properties of interest, no deal can ever be made without getting in touch with property owners.
With Reonomy TrueOwner, you can also access the contact information of the owning entities and individuals behind any commercial property.
Watch the video below for a more on Reonomy TrueOwner:
Owner contact information allows you to connect with decision-makers directly, instead of needing to go through brokers or middlemen to negotiate a deal.
Combining an off-market search with in-depth property and ownership details is all you need for a lifetime of investment success. Getting started takes just a few clicks.