Off-market commercial real estate in Atlantic Canada

The short answer

You find off-market commercial property through people, not websites: commercial brokers who know you are a real buyer, other owners, and the lenders, lawyers and accountants who hear about a sale early. The work is to become known, with clear criteria and the ability to close, in the places where those people talk.

One thing to be clear about: Commercial Group Canada is a network of people, not a listing service. Nothing is listed for sale on this website.

What the terms mean

• Off-market. A property that is for sale, or could be for the right offer, but is not publicly advertised.
• Exclusive listing. A listing agreement with a brokerage. In Nova Scotia, the Real Estate Commission explains that under an exclusive listing contract a seller may have the property advertised on the MLS system or marketed only by the brokerage.
• Pocket listing. An informal name for a listing that a broker markets privately to buyers they already know.
• Direct or owner-to-owner sale. A sale agreed between the owner and the buyer without a public listing, sometimes without a broker.

The rules treat commercial property differently from houses. Since 3 January 2024, the Canadian Real Estate Association's REALTOR Cooperation Policy has required REALTORS to place a publicly marketed listing on an MLS system within three days. Commercial listings are exempt, so a commercial broker can market a building privately.

Why some property sells quietly

• Confidentiality. An owner may not want tenants, staff, lenders or competitors to know a building is for sale.
• Certainty and speed. A seller may prefer one credible buyer and a clean closing to a public process.
• A small market. In a market this size, an experienced broker often knows the likely buyers for a building before it is listed.
• Relationships. Owners sell to people they know: a neighbour, a partner, a tenant, or someone who asked at the right time.

Where the conversations happen

• With commercial brokers. They call the buyers who have told them exactly what they want and have closed before.
• Between owners. At association events, at private evenings, and in ordinary conversation. Owners know who is thinking of selling.
• Through professionals. Commercial mortgage brokers, lenders, lawyers and accountants often learn about a sale, an estate or a partnership ending before anyone else.
• In private networks. Members of Commercial Group Canada meet at invite-only evenings in Halifax and share on-market, off-market and pocket listings with each other in the members' deal room. What members choose to share is up to them, and none of it is published.
• By asking the owner. Property ownership is a matter of public record. A respectful, specific letter or call to the owner of a building you want is one of the ways off-market deals start.

How to be the buyer who gets the call

• Have clear criteria. Asset type, size, location, price range. "12 to 40 units on the peninsula or in Dartmouth" is something a broker can act on.
• Be able to close. Talk to a lender or commercial mortgage broker first, so you know what you can finance and can say so.
• Be easy to deal with. Answer quickly, do what you said you would, and do not retrade without a reason.
• Keep confidences. If you are told about a building quietly, keep it quiet. People who pass on someone else's deal do not get shown the next one.
• Stay in touch. The call goes to the person who was top of mind, which usually means the person who was in the room recently.

The legal lines

You need a licence to trade in real estate for others. In Nova Scotia, the Real Estate Trading Act says no one may trade in real estate, or hold themselves out as available to, unless they are licensed by the Nova Scotia Real Estate Commission or the Act otherwise permits it. Owners dealing with their own property are exempt. New Brunswick's regulator has warned specifically about unlicensed people putting off-market properties under contract in order to resell the contract.

Introducing two people who might do business is networking. Negotiating or arranging a sale for someone else is trading, and that needs a licence. If you are unsure which side of the line you are on, ask the regulator or a lawyer.

Off-market is not a discount. A private sale has had less exposure to the market, which cuts both ways. Do the same diligence you would on a listed property: financials, leases, title, building condition and environmental reports.

Next step

If you invest in, own or develop commercial property in Atlantic Canada, apply to join Commercial Group Canada. There is no fee and applications are reviewed personally within 3 to 5 business days. For more on the people side of deals, read how to find real estate investment partners.