Struggling to get into Adelaide’s competitive commercial property market? You’re not alone. But your solution could be looking for off-market opportunities. Off-market commercial property deals are those which occur before the property has been publicly listed or advertised. This is the sort of deal that happens at the behest of a seller who wants to avoid the hassle of marketing, and provides many benefits to those who know how to take advantage of this ‘secret’ opportunity.
Why off-market could be the way to go.
When looking for a property to buy, most people go through the process of viewing listings, inspecting, putting offers forward and then crossing their fingers. Finding a commercial property off-market could take all the pain away and see you get the best possible deal. Here’s why.
Remove the competition.
Right now, this is the most important reason why off-market is beneficial. With good commercial properties in short supply in Adelaide, it’s nearly impossible to stand out above the competition. It seems by the time you’ve seen the listing, the property is already under offer. Competition also drives up the price, significantly. With no one to negotiate against in an off-market deal, you and the seller negotiate the price and get it done with a minimum of fuss.
Save a huge amount of time and stress.
Navigating the commercial property market is hugely time consuming for a buyer. There’s an incredible amount of research and due diligence to be done, let alone the search, offer and negotiation process. If you have a clear idea about the property you want to buy, and you can deal direct with a seller on that right property, you’ve saved yourself a whole lot of pain.
Too good to be true?
Maybe it sounds a little too good to be true; the idea of a property being sold to you for under cost price, with no competition from other buyers, no extra fees, and all you have to do is find a place for sale that isn’t being advertised yet. Why would a seller even go down this path? A seller might want to keep their property off-market for the following reasons:
- Privacy. Maybe it is a high profile business or property. Maybe the owners want to keep things quiet. Either way, off-market keeps minimal eyes on the property.
- Savings. While they may be selling to you for less, they’re saving money on advertising, agent fees and other costs that are associated with the sales process.
- Efficiency. If the property is kept off-market, the seller doesn’t have to worry about inspections, fielding many enquiries and questions from interested parties and the often lengthy process of negotiation. Avoiding time-wasters and low ball offers is a huge benefit!
- Presentation and maintenance. If an owner doesn’t have to present their property to the market, that usually means they don’t have to go through the costly and time consuming process of surface level maintenance and ‘clean up’ to make sure the property is looking good for potential buyers. Just being able to sell a property as-is can be quite a relief.
So, how do you buy off-market?
Off-market commercial properties sound great, but how do you come across these extremely rare property opportunities?
- Buyer’s agents. Working with an experienced buyer’s agent is the best way to find a commercial property off-market. A good buyer’s agent has key relationships in property allowing them to find property opportunities before anyone else, and they also know where to look, and who to ask, to find your perfect property. Not only that, a buyer’s agent will manage the whole process for you, including negotiation, to ensure you get the best possible deal.
- Property networks. If you work in the industry, or know those who do, you can have ‘insiders’ keep an eye out for property opportunities before they go public. Of course not many people have big networks in the property industry, and it can be time consuming to build these relationships to enable you to get the property, and deal, that you’re after.
- Go direct. Have you found the perfect property, but it isn’t for sale? You could approach the owner direct and make an offer. This is very much rolling the dice, but if you have a compelling offer, and you happen to hit the owner at the right time, you never know. You can boost your chances by having a buyer’s agent, who is an expert at pulling together offers, and can act on your behalf.
Broadway Property offers a holistic commercial property advisory service for investors, buyers and sellers. The team of experienced buyer’s agents can work with you to explore off-market opportunities and secure the best possible property deal in a competitive market. It starts with a conversation. Get in touch for a no obligation discussion about your needs. Ben Heritage Managing Director, Broadway Property Email me Ryan Stewart Director, Broadway Property Email me