Transactions
Off-market or bidding process — what delivers more?
Discretion or price competition: the suitable route depends on the buyer universe and the asset, not on the method.
It is widely assumed that a broad bidding process always achieves the highest price. The counter-thesis — that off-market sells better — is just as widespread. Neither holds as a general rule. Which marketing strategy is suitable depends in particular on the buyer universe, asset specifics, confidentiality, competition, timeframe and the level of transaction certainty required.
What argues for a structured process
For standardised assets with a broad, clearly identifiable buyer market, competition can create price transparency that a single negotiation does not. This requires a solid document base: a process with an incomplete data room produces reservations instead of bids, and the second round moves downwards.
A process also ties up resources — on the seller side as much as with the bidders. Anyone running one should fix the timetable, information stages and decision paths in advance.
What argues for targeted outreach
For assets that require explanation, the buyer universe is often narrow: operator properties, assets with a changing tenant structure, sales out of shareholder disputes, development land without planning consent. A broad approach then mainly reaches addresses that cannot underwrite the case.
There is also the confidentiality aspect. An asset visibly in the market for a long period without selling can lose perceived attractiveness. How strongly this effect operates depends on the segment, market phase and buyer group.
How we approach it
For assets that require explanation or confidentiality, we often prefer a targeted approach to a qualified buyer group with a fixed offer deadline and clear rules. That can create competition without exposing the asset broadly.
The real work lies in selecting the addresses: who is currently investing in this segment, who has capital allocated, who can accommodate the structure, and which committee decides. For this we draw on our network of more than 8,000 lenders and investors.
In short
It is not the process format that decides, but the depth and qualification of the buyer market for this specific asset. Either route can deliver the better price — the choice needs a reason.
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