How to Find Off-Market Properties
Off-market properties present a unique opportunity for savvy investors to secure high-value assets with less competition and more favorable terms. Unlike publicly listed properties, off-market deals are not widely advertised, making them harder to find but often more rewarding. Whether you’re looking to expand your portfolio or secure exclusive opportunities, understanding how to source off-market properties is essential.
Step 1: Define Your Acquisition Criteria
Before starting your search, clearly outline the type of property you’re looking for. Establishing specific acquisition criteria will save time and help you focus on deals that meet your investment goals. Consider these factors:
Property Type: Industrial, retail, multifamily, or land.
Location: Target specific neighborhoods or cities with growth potential.
Size and Scope: Define square footage, lot size, or project scale.
Financial Metrics: Set benchmarks for cap rates, cash-on-cash returns, and net operating income (NOI).
Price: Establish a budget or target price per square foot (PPSF) to ensure investments align with financial goals.
By refining your criteria, you can narrow your search and target properties that align with your objectives.
Step 2: Sourcing Off-Market Deals
There are two primary methods to uncover off-market properties: traditional approaches and modern technology-enabled strategies.
Traditional Methods
Cold Calling: Contact property owners directly to inquire about potential interest in selling. Focus on properties in target areas with underutilized potential.
Networking: Build relationships with local brokers, property managers, and industry professionals who may know of off-market opportunities.
Modern Technology-Enabled Strategies
Data Platforms: Use tools like CoStar, Reonomy, and ProspectNow to identify ownership data, property details, and potential leads.
AI-Driven Insights: Leverage AI-powered platforms to predict properties likely to sell based on historical data and market trends.
Step 3: Build Relationships with Key Players
Working with an experienced commercial real estate brokerage can streamline your search for off-market properties. Brokers with strong industry connections often have access to exclusive deals and can negotiate favorable terms on your behalf.
Why Off-Market Properties Are Worth the Effort
Reduced Competition: Off-market properties are not publicly advertised, reducing the number of interested buyers.
Potential for Negotiation: Sellers in off-market deals are often more flexible, allowing for favorable terms.
Access to Unique Assets: These properties may include premium or rare opportunities unavailable in the public market.
Market Insights on Off-Market Transactions
Off-market transactions constitute a significant portion of the U.S. real estate market. In 2024, approximately 1.2 million home sales were conducted off-market, showcasing the importance of this hidden market segment. According to Altus Group’s Q3 2024 report, the commercial real estate market saw a 9.6% decrease in transaction volume compared to 2023, with CBRE reporting $90 billion in Q3 activity. While comprehensive data for the entire year is not yet available, these numbers indicate a slower but resilient market, with off-market deals playing a critical role in overall transaction volume.
The private nature of off-market transactions makes precise data challenging to gather, but they remain a vital strategy for securing unique opportunities and gaining a competitive edge in a slower market.
How Haymakers Can Help
At Haymakers, we specialize in uncovering off-market opportunities that align with our clients’ investment goals. Leveraging our extensive network and advanced data tools, we connect investors with exclusive off-market properties while offering strategic guidance throughout the acquisition process. Contact us today to explore how we can help you gain a competitive edge with access to our off-market deal flow.