Residential agents are required to enter properties on the Multiple Listing Service (MLS) within one business day of marketing a property to the public. Public marketing includes, but is not limited to:

• Flyers displayed in windows yard signs
• Digital marketing on public-facing websites
• Brokerage website displays
• Digital communications marketing (email blasts)
• Multi-brokerage listing sharing networks
• Applications available to the general public

Commercial real estate is not subject to these same regulations and, as a result, a good portion of commercial properties are sold off-market. Agents are still often involved in these transactions, but good commercial agents are able to connect well qualified buyers to the seller and often have a buyer in hand before a property is publicly marketed. Many of these transactions are relationship driven and so it is important that sellers work with well connected agents in the commercial field. 

Commercial real estate is not subject to residential regulations, so a good portion of commercial properties are sold off-market.

Commercial properties are sold off-market for a variety of reasons – confidentiality being one of them. For example, a property with tenants in it may prefer an off-market approach so as to not alarm current tenants or customers of those tenants who might start to think the businesses themselves may be going under. Protecting financial data is another reason. Confidentiality agreements are typical in these transactions. 

Once upon a time, off-market properties carried a stigma of being distressed and run down, but that’s no longer the case. With today’s competitive market, it’s harder for buyers to compete and transact on deals that are mass marketed. Commercial transactions can take longer to complete than residential, given the often vast amounts of due diligence and approvals required. Selling a property off-market often simplifies the process too. Many times an agent reaches out to a property owner with a buyer in hand. Regardless of the reasoning, both buyers and sellers of off-market properties often feel like they’ve made a good deal. 

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– Written by Laura Stoll & Dave Garvey