How To Find Commercial Real Estate Using PropStream

Disclaimer: PropStream does not offer financial or legal advice. This article is for informational purposes only. Consult a legal or financial professional before buying commercial real estate. 

While PropStream is a powerhouse for residential property information, did you know it can also be your secret weapon for finding lucrative commercial properties?

If you've been dreaming of breaking into the world of commercial real estate (CRE), your time is now. This article will be your guide, explaining exactly how to leverage PropStream to find and analyze diverse commercial property types, avoid common pitfalls, and set yourself up for success.

What Is Commercial Real Estate?

Commercial real estate includes office, industrial, multifamily, and retail properties. Here are some examples within each category:

In short, commercial real estate is a broad category that includes most property types other than single-family homes.

Benefits of Investing in Commercial Real Estate

Investing in commercial real estate offers distinct benefits over residential real estate:

Higher Income Potential

On the whole, commercial properties are larger than residential properties, allowing owners to charge more rent. Plus, tenants are often businesses that can afford to pay more in rent.

Longer Lease Terms

Another benefit of having commercial tenants is less turnover. Many businesses will sign multi-year leases because they’re committed to their business location.

More Predictable Cash Flow

Commercial tenants typically have regular cash flow from their businesses to pay rent. This can make your cash flow as a property owner more predictable.

Portfolio Diversification

Because commercial real estate comprises many property types, it’s easier to diversify your portfolio. You can also diversify across multiple tenants more easily.

Why Commercial Deals Are Harder to Find and Why They Matter

That said, commercial deals can be harder to find than residential ones.

For instance, many CRE deals happen off-market within a smaller network of owners. They’re almost never publicly listed for sale. As a result, first-time buyers must learn to identify CRE owners and reach out to them with an offer.

However, the CRE marketplace also has its advantages. Fewer buyers can afford commercial properties, which means less competition and greater negotiation flexibility for those who can. Since many deals happen off-market, you’re also more likely to find undervalued properties and gain direct access to decision-makers.

How PropStream Helps You Find Commercial Real Estate

Fortunately, you can still find commercial real estate deals outside the multiple listing service (MLS) via PropStream.

PropStream offers a dedicated commercial property search filter to help you find and analyze properties in your market. Furthermore, you can go beyond commercial properties in general to pinpoint over 50 very specific types of commercial properties.

Then, you can stack additional filters, including potential selling motivations. For example, you could combine filters like retail or mixed-use, high equity (50%+), 10+ years ownership, absentee owner, and off-market to quickly pinpoint motivated commercial sellers.

From there, you can skip-trace property owners’ contact information and launch email, postcard, or cold-calling campaigns to get in touch.*

Common Mistakes to Avoid While Handling Commercial Real Estate Leads

When contacting commercial real estate leads, avoid these common pitfalls:

• Treating commercial like residential. Commercial properties adhere to different regulations and often require working with business tenants and owners.

• Only relying on the listed properties. Many commercial properties never make it to the MLS. Look off-market to find the best deals.

• Not segmenting property types. Offices work differently from condos and vice versa. Know the differences between property types so you know what you’re getting into.

• Ignoring owner signals. Selling motivations—such as high equity, long-term ownership, and absentee ownership—can show up in property records and lead to great deals.

Tips for Getting Started in Commercial Real Estate

To succeed in commercial real estate, follow these best practices:

Start with Smaller Assets

Relatively small assets like small multifamily, mixed-use, and local retail properties are a great place to start because they involve fewer operational variables.

Focus on a Niche

Instead of taking on any type of commercial real estate, focus on one asset class. That way, you can become an expert in it before moving on to other asset classes.

Build a Repeatable System

A repeatable system for finding, analyzing, and making offers on commercial properties is how you scale your business. Try PropStream for an all-in-one solution. It helps you find property deals, analyze the numbers, and connect with property owners from the same platform.

Focus on Quality Over Quantity

Because commercial real estate has high market value, one solid deal can earn you a good profit. However, the reverse is also true. So focus on deal quality over quantity.

Try PropStream for Free Today

Ultimately, finding commercial real estate opportunities becomes much easier when you have the right property information and tools.

Use PropStream to search commercial properties, apply advanced filters, build focused lead lists, and connect with property owners to uncover off-market deals.

*PropStream engages an independent third-party to perform skip tracing.