The commercial real estate market operates within two distinct segments: off-market and on-market transactions. Each segment has its unique characteristics, advantages, and disadvantages, catering to different types of investors and property owners.
Off-market transactions refer to commercial properties that are bought and sold without being publicly advertised or listed on popular real estate websites like Crexi and Loopnet. These deals often occur through personal connections, word of mouth, or specialized brokers with extensive industry networks. Off-market properties may exchange hands before the general public becomes aware of their availability, offering several advantages:
Less competition: Off-market transactions can allow investors to acquire properties without facing the competition that often accompanies widely advertised listings.
Potential for better pricing: Sellers may be more willing to negotiate favorable pricing and terms in an off-market deal, as they can save on marketing costs and avoid the potential negative perception associated with properties that have been listed for an extended period.
Discretion: Off-market transactions can appeal to high-profile investors and property owners who value privacy and want to maintain a low profile during the transaction process.
On the other hand, on-market transactions involve commercial properties that are publicly listed and marketed through popular real estate websites, such as LoopNet and CREXi. These properties are widely advertised, attracting a broader range of potential buyers and investors.
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Posted by Tim Bray on