Top 10 Ways To Find The Best Commercial Real Estate Properties

Finding the right commercial properties to invest in can be a great way to start your real estate investment portfolio or diversify it, propelling your returns significantly through a single investment. This is due to commercial property investments usually offering a range of benefits over residential properties such as longer lease periods, qualified tenants, greater returns, and lower risk due to multiple tenants to a single property. However, with the current uncertainty in the commercial real estate market, due to the recovery from the pandemic and a rapidly changing global economy, it is key that investors should vet opportunities with care to minimize risk and generate expected returns. 

Always ensuring you properly evaluate each real estate deal  is key to ensuring you reap the most benefits from your investment. But before determining a great commercial real estate deal, you first need to find them! There are multiple avenues savvy investors can use to discover commercial real estate property deals. Before starting the search process, always ensure to set clear goals in terms of your budget, expected returns, and the type of investment you are interested in so that you do not waste time effort and money pursuing unrelated deals. 

1. Networking

By establishing links with professionals in the real estate industry, like brokers and other investors, it is possible to find new off-market deals as well as upcoming trends to get on board early. Foster good relations with your local builders – they are a good source of local knowledge. Builders usually know about properties that may have been abandoned mid-project due to financing issues, allowing for quick, profitable deals.

2. Local newspapers & publications

Many publications have listings for local commercial properties that are for sale or lease. Browsing these can help you discover deals that have not been listed online.

3. Online websites

Platforms such as CoStar and LoopNet specialize in commercial listings, allowing you to find a diverse range of properties such as apartments, office buildings, and shopping centers. Due to their lack of geographic gating, you can explore listings from across the US from North Carolina to California and all the states in between, as well as easily filter by a range of criteria such as property type, cap rate, lot size, zip code and so much more.

Crowdfunding sites are another alternative way to find investments with lower upfront capital requirements.

4. Online auctions

Online auctions, including government auctions, can be a great way to find properties at a discounted price as bidding usually starts low, so with a good strategy and sufficient research, you could score big. 

5. Driving around

Cruising around a location you are interested in can help you to find “For Sale” or “For Lease” signs on properties. Utilize this to uncover opportunities not found on websites or newspapers targeted specifically in the areas that you would like to invest in.

6. Direct mail

Sending direct mail to property owners in a targeted area highlighting your potential investment interest can help you find motivated sellers and is a great way to identify off-market listings. Always make sure to try and research the area, and carefully select your target audience to increase outreach success. 

7. Wholesalers

Talking to real estate wholesalers is a good way to find properties that may not be listed traditionally. However, be aware that buying through a third party, could mean you won’t get the most competitive price compared to negotiating directly with the source.

8. Hire a real estate broker or agent

The tried and true method for finding real estate investment opportunities. Brokers find great deals for a living and can also help you throughout the negotiation and purchase process. Additionally, veteran brokers can offer knowledge of the market as well as assistance in tackling legal and financial responsibilities involved with a transaction. 

9. Social media

Joining groups and forums online can be another avenue to discover commercial property listings while also providing a direct tool to communicate with prospective sellers. Aggressive investors could even run targeted ads searching for types of investment deals. 

10. Invest through Private Equity Real Estate (PERE) firms or Real Estate Investment Trusts (REIT)

This can be a way to generate more passive income, without the hassle of finding and closing deals and then managing the property afterward. REITs are similar to PERE firms in that they pool investor capital into real estate assets, but the underlying legal and operational models do differ, so careful research prior to investment is necessary.

Conclusion

In summary, there are several different ways to go about finding the best commercial real estate deals in the market, each with its own benefits and drawbacks, and the effort required varies between them. Having a clear strategy, along with a helping of patience and persistence, will allow you to find the best deals to maximize your returns in your commercial real estate investments.

And what should you do after you’ve found the best commercial investment property? Well, consider finding the best financing deal for said investment! The definition of “best” financing deal is going to vary from project to project, so work with our team at RE Investor News to identify the perfect financing opportunities for your specific needs. Our specialists will pair you with credible, stable lenders to get your next real estate deal off the ground.

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