What Makes a Property a “High-Potential” Acquisition
By Endrina Marchena, Property Sourcing Lead at CommercialGRP
When people ask me what we look for in a “great deal,” my answer is usually the same: it’s not just about the property itself — it’s about the combination of the asset, the market, and the opportunity to create meaningful value over time.
At CommercialGRP, sourcing high-potential acquisitions isn’t about chasing what looks good on paper. It’s about identifying properties where the fundamentals align with a clear path forward — for both performance and community impact.
Let me walk you through how we think about that.
It Starts With the Right Market
Before we ever look at a building, we look at the market around it.
We’re asking questions like:
- Is there consistent demand for industrial or retail space here?
- Are businesses expanding into this area?
- Are population and job trends supporting long-term growth?
A strong property in the wrong market can struggle. But a well-positioned asset in a growing market creates options.
This is why our sourcing process is closely tied to data and trends — something we expand on in The Key Indicators We Track Before Investing in Any Market.
Then We Focus on Functionality
Once a market checks out, we shift to the property itself.
For industrial and retail assets, functionality matters more than almost anything else.
We evaluate:
- Layout and usability
- Access (loading, parking, visibility)
- Building size and flexibility
- Ability to meet current tenant needs
Our buy box — 15,000 to 120,000 square feet — keeps us focused on properties that are large enough to be meaningful, but still flexible enough to serve a wide range of tenants.
A high-potential property doesn’t need to be perfect — but it does need to be usable.
We Look for a Clear Value-Add Opportunity
This is where things get interesting.
Most of the properties we target aren’t fully stabilized — and that’s intentional.
We’re often looking at:
- Vacant or partially leased buildings
- Underutilized spaces
- Properties that haven’t been updated or repositioned
The key question is: Can we improve this property in a way that creates long-term value?
That might mean leasing up vacancy, improving operations, or making targeted upgrades.
Numbers Matter — But So Does the Story
Of course, we underwrite every deal carefully.
We’re looking at:
- In-place income vs. projected income
- Market rents and leasing assumptions
- Capital improvement needs
- Downside scenarios
But beyond the numbers, we’re also asking:
- Does this opportunity make sense in the real world?
- Is there a clear path to execution?
- Are we being realistic about the timeline?
Being detail-oriented here isn’t optional — it’s what allows us to move forward with confidence.
Relationships Are a Big Part of the Process
A lot of high-potential opportunities don’t show up in a listing.
They come through relationships — with brokers, owners, and partners who trust that we’ll approach deals with transparency and follow through.
That means:
- Communicating clearly and consistently
- Being straightforward about what works (and what doesn’t)
- Respecting everyone’s time throughout the process
Some of the best opportunities we’ve seen started with a simple conversation.
Alignment With Long-Term Impact
One thing I always come back to is this: a high-potential acquisition should benefit more than just the balance sheet.
Many of the properties we source have the opportunity to:
- Bring new life to underutilized spaces
- Support local businesses
- Improve the overall functionality of an area
That connection between investment and impact is a big part of how we define “potential.”
Staying Disciplined in the Process
It’s easy to get excited about deals — especially in competitive markets.
But one of the most important parts of our process is knowing when not to move forward.
We stay grounded in:
- Our target asset types
- Our size range
- Our underwriting standards
- Our long-term strategy
That discipline is what allows us to focus on the right opportunities, not just more opportunities.
If you want a closer look at how we approach sourcing specifically, How We Source Off-Market Industrial Opportunities breaks that down further.
So, What Really Defines “High-Potential”?
For us, it comes down to alignment.
A high-potential property is one where:
- The market supports demand
- The asset is functional and adaptable
- There’s a clear path to create value
- The numbers make sense — conservatively
- The opportunity aligns with our long-term strategy
When all of those pieces come together, that’s when a deal moves from interesting to actionable.
Let’s Connect
If you’re a broker with industrial or retail opportunities that may fit within our focus, or an investor looking to better understand how we evaluate deals, I’d genuinely love to connect.
At CommercialGRP, we’re motivated by finding the right opportunities, communicating openly, and building relationships that lead to long-term value — for everyone involved.