An off-market real estate deal refers to a property that is not listed or widely marketed. The connotation is that an off-market deal is a good deal because there is no competitive bidding and thus the lessee/tenant/buyer gets a better deal.
Off-market deals usually happen when the owner doesn’t want to pay the commission of the broker or wants to pay a reduced commission. Asa result, the broker doesn’t want to take on the expense of listing the property and most likely uses word of mouth or minimal marketing.In other off-market deals, the landlord simply doesn’t use any broker and so he is unable to list the property broadly to other brokers. This by definition, is an off-market deal.
Reasons Owners Do Off-Market Transactions
Other than to save commissions, why would an owner engage in an off-market deal? Doesn’t the owner want to maximize profits? Well in addition to saving commission, there could be many other reasons an owner would choose an off-market deal over a widely marketed deal.Reasons include:
-Control. In general, off-market deals are do not use an exclusive broker and so are non-exclusive deals. Thus the owners have more control over the type of deal they will negotiate.
-Discretion. Owners can choose who they want to transact with because listing is not widely marketed, owners can turn away bidders, agents and brokers.
-Speed. With less parties involved and parties feeling they have a deal, closing transactions can be quicker.
Where Can Tenants Find Off-Market Retail Space?
Tenants can poke around the neighborhood where they want to open a business. They can inquire with other stores asking if they can be introduced to their landlords who may have other spaces in the neighborhood. If they live in the neighborhood already, they can ask their landlord, perhaps they might have extra space. A lot of this effort involves a lot of “if.” There must be an easier way to connect with owners of vacant space?
The answer is UpPeg. UpPeg is where owners list their vacant retail space without a broker. UpPeg is a “For Lease by Owner” marketplace and more. Tenants can search and find owner listed spaces and deal directly with owners. UpPeg addresses all owner’s concerns and reasons for wanting to do an off-market deal. UpPeg does not charge owners any commission, just a one time flat listing fee. Tenants contact owners direct so owners have control of negotiations and the leasing process. There is no wasted time with back and forth questions because the space’s rent, square footage, attributes, street view and 360°tour are available to the tenant to make his informed decision. And since UpPeg has all the listing details and the parties are dealing direct, closings can happen quickly.
Conclusion and a Word of Caution
In closing, a word of caution. Many times, brokers or owners will tell you “this is an off-market deal.” But is it really an off-market deal? They could just be saying it to make you feel like you are getting a bargain. Like marking a product up and then discounting it big to give you a feeling you got a deal. So always check to see if the space is really listed by owner and that you are dealing direct with owner. At UpPeg, UpPeg verifies its owner listings and direct owner contacts. Good luck finding your perfect“off-market” deal at UpPeg!
UpPeg is the trusted marketplace that connects merchants with owners of vacant retail space and provides them the tools to transact successfully. On UpPeg, owners can list their vacant space without a broker. And merchants can find and lease retail space from the convenience of any device. Owners and merchants deal direct with each other, making the leasing process simple, transparent, and efficient.For more information, visit UpPeg.com.