Traditional brokerage structures often discourage collaboration with brokers both outside and even within the same firm, further narrowing a property’s exposure. This siloed approach, often driven by internal competition for commissions, limits the potential for a competitive listing environment.

Size Matters: The Misconception of Buyer Pool Narrowing

A frequent misconception is that larger properties appeal to a smaller, specialized group of buyers. While it’s true that high-value properties may initially seem suited to a specific audience, current market dynamics tell a different story. Many buyers, including institutional investors, are actively seeking diversified assets, ranging from mid-sized commercial properties to large-scale investments. In today’s environment, a robust marketing plan should target investors across a spectrum of sizes and types, including those who might not be actively searching but may see value in the opportunity.

Investors’ interests have broadened with the rise of private and public REITs, institutional syndicators, investors, and even family offices with substantial capital. The number of global institutional investors seeking U.S. real estate assets grew by over 15% in 2023 alone, signaling the appetite for large, varied investments is robust and international, but many brokers work to persuade their clients the opposite is true.

The New Reality: Buyers are Everywhere

Buyers are driven by numerous factors, from favorable tax climates to economic stability, especially in high-growth states like Texas. Properties with broad marketing reach often secure higher sale prices because they can engage more diverse buyer profiles.

Sellers who aim for broad exposure often drive greater competition, resulting in better offers and terms. Real Capital Analytics reports that fully marketed properties can achieve up to 16% higher sale prices compared to those with limited buyer exposure."

According to the analytics solutions firm, fully marketed properties can achieve up to 16% higher sale prices than those marketed to limited buyer pools. This highlights the tangible financial advantage of reaching a broader buyer spectrum. Further, as reported by the NAR, the average increase in transaction price for commercial properties marketed to diverse buyer pools, versus those targeted to limited ones. This trend has been steadily rising year-over-year.

Debunking the Myth of Over-Exposure

One concern some brokers raise is that extensive exposure might make diluted interest in a property seem less exclusive. However, recent transactions prove the opposite is true. We recently sold a property with a price north of $100 million. During the listing process, we received over one hundred buyer registrations, 42 offers (25 of which were from out-of-state), and seven from international buyers. This generated a more competitive auction environment, benefiting the seller through a broader range of offers.

The notion of "over-exposure" is also rooted in a misconception about the sophistication of modern investors, who frequently seek out properties through multiple channels and appreciate transparency. By implementing a strategic yet wide-reaching marketing plan, brokers can ensure that high-value buyers perceive a property as worthwhile avoiding over-exposure.

Addressing Owner Concerns Over Privacy and Confidentiality

Many owners worry that broad marketing could compromise confidentiality, leading to unintended consequences such as tenant unease, competitive insights, or unwanted attention. Yet, there are highly effective methods for balancing broad exposure with privacy. For example, tailored buyer outreach allows brokers to reach vetted, high-quality investors without public advertising, ensuring the property reaches the right audience without widespread disclosure. Confidential marketing strategies, such as requiring non-disclosure agreements and controlling information releases, also support owner privacy while broadening the buyer pool.

Moreover, brokers can enhance the seller experience by offering tenant communications that keep tenants informed at key stages. This approach not only reassures tenants but also fosters transparency and trust, reducing the likelihood of lease terminations or disruptions due to a sale.

Scott K. Lunine is Partner / EVP Brokerage Services at Partners