Where the deals are in a slow market: how to source CRE opportunities in 2025
When the market slows down, most investors go quiet. They assume that if listings are drying up and interest rates are high, there must not be any deals worth chasing.
But here’s the truth: some of the best commercial real estate opportunities show up when everyone else pulls back. It’s in these quieter cycles—like the one we’re in now—that serious investors find motivated sellers, underperforming assets, and creative deal structures that simply wouldn’t exist in a bidding-war environment.
In 2025, deals aren’t dead—they’re just harder to see. You won’t find them on LoopNet or the MLS. You’ll find them through relationships, research, and resourcefulness.
In this post, I’ll show you exactly how to source real CRE opportunities in a slow market. We’ll cover how to tap into off-market inventory, spot overlooked assets, work with the right brokers, and negotiate with sellers who actually want to make a deal happen.
Why the market Slows (and why that’s an advantage)
If you watch the market during a slow spell, you’ve probably noticed fewer listings, longer days on market, and a lot of investors waiting on the sidelines. That’s not your imagination—it’s a direct result of the broader economic environment.
📉 What’s Causing the Slowdown in 2025?
Higher Interest Rates: Borrowing costs are still elevated, which makes it harder to hit attractive cash-on-cash returns—especially for buyers relying on leverage.
Tighter Lending Standards: Lenders are more conservative, requiring stronger DSCRs, higher down payments, and more documentation than they did in 2021 or 2022.
Seller Hesitation: Many property owners are locked into low-rate debt from a few years ago. Unless they have to sell, they’re holding on and waiting for conditions to improve.
Valuation Gaps: Sellers still want yesterday’s prices. Buyers want tomorrow’s returns. Until one side adjusts, deals stall.
But here’s the upside: when markets slow, competition fades.
💡 Why That Creates Opportunity for Buyers
Less Buyer Competition: You’re not bidding against 15 investors anymore—maybe just one or two. That gives you room to negotiate terms, price, and due diligence timelines.
More Leverage in Negotiation: Motivated sellers are more open to concessions—repair credits, seller financing, even price reductions that would’ve been off the table two years ago.
Time to Think Strategically: Instead of rushing to place capital, you can focus on underwriting fundamentals and long-term value creation.
The current environment isn’t a reason to pause your investment strategy—it’s a chance to refine it. When others sit out, your ability to act decisively and creatively becomes a competitive edge.
How to build a reliable off-market deal pipeline
In a hot market, you can sit back and browse listings. In a slower market like 2025, you need to go find the deals. That means creating a system for identifying opportunities before they hit the public market—or uncovering assets that were never going to be listed in the first place.
Here’s how seasoned investors build a steady stream of off-market opportunities:
🔗 1. Broker Relationships Are Still King
Brokers are the gatekeepers to many of the best deals—especially in secondary markets like Nashville. The key is not just working with brokers, but being top-of-mind when the right listing quietly comes across their desk.
Be specific about your buy criteria (asset type, size, location, risk tolerance).
Prove you can close—brokers will prioritize serious, capable buyers who follow through.
Stay in touch regularly without being a time-waster. Add value when you can.
Pro tip: Many brokers test the waters with a few calls before they formally list a property. You want to be on that shortlist.
📬 2. Go Direct-to-Owner
If you’re willing to be proactive, there are plenty of property owners who would sell—but don’t want to list publicly.
Cold calling and mailers: A well-crafted letter or call can open the door to a conversation no one else is having.
LinkedIn and email outreach: Look up LLCs and managing members. Reach out with a clear value proposition.
Property walks: See a tired building with outdated signage and overgrown landscaping? That’s often a signal the owner is burned out or undercapitalized.
Key tip: Approach from a place of curiosity, not pressure. Sometimes just asking, “Have you thought about selling?” is enough to spark a deal.
🏚️ 3. Look for Physical and Operational Clues
Drive your target submarkets and keep your eyes open:
Vacant storefronts
Unkempt landscaping or deferred maintenance
Buildings with no leasing signage
Assets with obvious deferred capex (old roofs, failing HVAC units)
These are often signs of an absentee owner—or someone who’s no longer interested in putting in the work.
🗂️ 4. Use Public Records and Data to Your Advantage
Dig into:
Expired listings or failed closings from 6–12 months ago.
Tax delinquencies or code violations from your local property assessor or building department.
Properties held in trusts or estates, which often indicate aging ownership or potential transition.
There’s gold in public data—if you know how to look.
Building a pipeline like this takes effort, but it’s exactly what gives you an edge when the market is moving slow. The goal isn’t to wait for a deal to find you—it’s to build a system that brings consistent, qualified opportunities to your inbox.
Work with Brokers who specialize in local, Niche markets
If you want access to the best off-market or early-stage deals, you need more than just a broker—you need the right broker. That means working with someone who’s deeply connected in your target market and focused on the specific asset class or property size you’re after.
🧠 Why Local Expertise Beats National Reach in a Slower Market
Big-name brokerage firms often focus on institutional-grade deals, but in a market like 2025, most of the real action is happening in smaller submarkets, emerging corridors, and sub-$5M assets. That’s where local brokers with niche knowledge shine.
They know:
Which landlords are tired.
Which tenants are planning to relocate.
Which buildings are underperforming and ripe for repositioning.
In a city like Nashville, for example, a broker who specializes in flex space or neighborhood retail can get you into deals weeks before they ever hit the public market.
🤝 How to Get on a Broker’s “First Call” List
If you want access to whisper listings and pocket deals, you have to prove that you’re a serious, credible buyer. That means:
Clearly define your buy box (price range, product type, location, risk profile).
Demonstrate the ability to close—proof of funds, access to lending, or a track record of recent deals.
Be responsive and respectful of their time. Nothing turns off a good broker faster than endless questions with no action.
Close when you say you will. Brokers remember who performs and who flakes. If you build trust, they’ll bring you deals first.
🔍 Look for Brokers Who Specialize in Overlooked Niches
Flex space experts who work with local trades and light industrial users.
Retail leasing agents who know which tenants are expanding or struggling.
Office specialists who understand medical, coworking, or creative tenant demand.
The more specific their market knowledge, the better your chances of finding off-market or underpriced properties that others miss.
Bottom line: the right broker is more than a deal finder—they’re a deal filter. They’ll bring you opportunities that align with your goals and steer you away from the ones that don’t.
Target Sellers with Motivation—Not Just Properties with Price Drops
In a slow market, price drops are everywhere—but price alone doesn’t make a deal. What you really want to find are motivated sellers: people who need to sell, not just want to. These are the owners most likely to negotiate, accept creative terms, or be flexible on timing.
Here’s how to identify the signals:
💼 1. Owners Facing Debt Maturities or Rate Resets
Many properties financed in 2020–2022 are now hitting their refinancing window—and doing so in a much higher interest rate environment. If the new debt service doesn’t pencil, owners may look to offload the property before they’re underwater.
Look for buildings that were purchased 3–5 years ago using floating-rate debt or short-term bridge loans.
Pay attention to listings that mention “owner will consider all offers” or “priced for quick sale.”
🏚️ 2. Tired Landlords and Management Burnout
Not every owner wants to keep grinding through lease-ups, maintenance calls, and operating headaches—especially on small, multi-tenant buildings. Watch for:
Deferred maintenance
Absentee ownership
Properties managed by out-of-state landlords
Aging ownership with no succession plan
These owners may be open to a clean, hassle-free exit.
🪦 3. Estate-Owned and Inherited Properties
When real estate changes hands due to death, divorce, or inheritance, it often leads to quick sales—especially when heirs aren’t equipped (or interested) in managing the asset.
Check probate court records and estate filings for leads.
Reach out to estate attorneys, CPAs, or financial advisors for introductions.
These properties are often unlisted or poorly marketed, creating opportunity for off-market acquisition.
🚪 4. Long-Term Vacancies and Tenant Instability
A building that’s 60% occupied—or sitting vacant altogether—can scare off most buyers. But for an investor with a plan, it might be the perfect value-add play.
Look beyond the current vacancy and ask: Why is it underperforming? Is it location, layout, marketing, or management?
Use this as leverage in negotiations—but only if you have a clear path to stabilize it.
💡 Reminder: Motivation Beats Discount
Just because a property is cheap doesn’t mean it’s a good deal. A seller’s reason for selling is often more important than the list price. Look for clues that tell you someone is ready to make a deal—not just test the market.
Get Creative with your offers and deal structures
In today’s market, creativity isn’t just helpful—it’s often what gets the deal done. With tighter lending standards and sellers clinging to yesterday’s valuations, traditional offers don’t always work. But a well-structured, flexible deal can bridge the gap between what a seller wants and what the numbers support.
Here are some of the most effective strategies:
💰 1. Seller Financing: The Win-Win Solution
When interest rates are high, seller financing can offer major benefits for both parties:
Buyers get more favorable terms than a traditional lender might offer.
Sellers can defer capital gains and earn ongoing income.
It’s especially effective when:
The property is owned free and clear.
The seller doesn’t need all the cash upfront.
The property wouldn’t appraise well or qualify for traditional financing.
Tip: Negotiate a shorter term (e.g., 3–5 years) with a balloon payment and refinance later when rates improve.
🔄 2. Master Lease with Option to Purchase
A great strategy when a property needs lease-up or renovations before it can support traditional financing.
You lease the property from the owner and take over operations.
You improve occupancy and NOI.
You exercise your option to purchase based on pre-agreed terms.
This strategy gives you control of the asset without needing to close immediately—ideal for distressed or transitional properties.
🧾 3. Assumable Financing
Some existing loans from 2020–2021 have fixed rates in the 3–4% range. If assumable, this can drastically improve cash flow.
Check with lenders and sellers early in due diligence.
Confirm assumption fees and qualification criteria.
Use the low rate to offset reduced leverage or seller equity requirements.
🤝 4. Partnering Up on the Capital Stack
If debt is expensive or limited, you can reduce leverage by bringing in a joint venture (JV) partner or passive equity investor.
Structure clear roles, returns, and exit strategies.
Look for partners who bring value beyond capital—management, construction, leasing, etc.
This allows you to go after bigger or more complex deals while spreading risk.
🛠️ 5. Blend Deal Terms to Reduce Downside
Combine strategies to find a middle ground:
Seller carries part of the note and you assume existing debt.
Master lease upfront with a seller-financed buyout.
JV with a partner who brings in operational experience while you handle capital raising.
In a slower market, sellers are often more open to creative structures—especially if it helps them offload a problem asset, preserve cash flow, or reduce their tax burden.
Bottom line: You don’t always need the perfect listing or the perfect price—you just need a structure that works for both sides.
Conclusion
In a hot market, deals are everywhere—but it’s hard to compete. In a slow market like 2025, the opposite is true: competition fades, and opportunities open up for those who know where to look.
The truth is, great deals don’t disappear during downturns—they just get harder to find. They move off-market. They live in tired buildings and aging portfolios. They show up in conversations with motivated sellers and brokers who trust you to perform.
If you’re willing to put in the work—building relationships, making calls, running the numbers, and staying creative—you’ll uncover deals that others miss. And when the market picks back up (as it always does), you’ll be sitting on cash-flowing assets you bought at a discount.
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When most people think of wealth, they picture luxury—cars, watches, private jets. But the truly wealthy? They think in terms of legacy. They build portfolios, not just paychecks. And more often than not, the foundation of that legacy is commercial real estate.
It’s no coincidence:
90% of millionaires own real estate.
Many of the country’s most powerful families—think the Rockefellers, the Trumps, the Pritzkers—used CRE as their vehicle for long-term generational wealth.
And even today, institutional investors and family offices are doubling down on real estate as a hedge against inflation, volatility, and market chaos.
But this isn't just about owning property. It’s about owning the right properties, in the right structures, with the right strategy—and playing the long game.
In this post, we’re breaking down what I call the $100M Blueprint—the long-term, strategic approach wealthy investors use to build and preserve wealth through commercial real estate. Whether you’re starting from scratch or scaling your portfolio, this guide will help you think like the pros and structure your real estate decisions for real legacy.