In commercial real estate, the traditional method of finding off-market deals often involves pulling a list of property owners in a zip code and cold calling them. However, according to Dan Mosher, co-founder and CEO of DealGround, an AI-powered commercial real estate intelligence platform, this "carpet bombing" approach is not only inefficient but also counterproductive.
Mosher points to the sheer scale of off-market inventory as a key reason. "Off-market is any building that’s not currently being listed. You have about 160 million properties in the United States right now, and the number of properties that are currently being listed is a small, small subset of that. So almost every property is technically off-market," he said. With such a vast pool, attempting to contact every owner is impractical and often alienates potential sellers.
Instead, Mosher advocates for a more targeted strategy. "We really believe in more of a sniper-like approach, whereby you’re targeting a specific set of properties because you have a buyer, you have a situation that you can help, and you are targeting owners with great information you have about them," he explained. This method, he argues, yields better outcomes by focusing on quality over quantity.
The alternative to cold outreach begins with building a specific set of filters and search parameters that match a buyer's criteria. "Off-market sourcing is creating a set of filters and search parameters that fit your specific needs as either a principal or a broker who’s looking to find a deal for a buyer," Mosher said. Once this filtered list is in place, the conversation with an owner transforms from a cold call into a warm lead. "When you reach out to that owner, you have a story that is compelling. You know the details about the owner’s property. You have a buyer, or you are a buyer, that’s got a certain philosophy and a buy box, and that property fits within that philosophy. That is not cold outreach. That’s more of a warm lead," he added.
This shift in prospecting is what DealGround aims to facilitate. The platform helps brokers narrow down properties and owners most likely to be receptive, using real data rather than guesswork. For brokers interested in seeing how this targeted sourcing works, DealGround provides a how it works page on its website.
The implications for the commercial real estate industry are significant. As Mosher notes, more calls do not necessarily lead to more deals. A smaller, better-informed list often outperforms a longer, generic one. This approach not only saves time but also increases the likelihood of success by focusing on properties that truly fit a buyer's needs. In a competitive market, such efficiency can be a major advantage.
DealGround, which serves the top 15 CRE brokerage firms nationwide, is positioning itself as a tool to help brokers make this transition. By transforming fragmented data into actionable intelligence, the platform enables brokers to generate qualified leads and move faster from prospecting to closing. As the industry continues to evolve, data-driven strategies like these may become the new standard for off-market deal sourcing.
