Commercial real estate negotiating takes a more than just having a few tricks up your sleeve to be successful. Sure, you’ve got to know how to “play the game”. As anyone with commercial real estate negotiating experience knows, it’s all part of how the process works. But there are a couple of other things you should consider when going into the commercial real estate negotiating process.
First, it’s important to do your homework. Whether you are the buyer/tenant, or seller/landlord, you’ve got to know with what and whom you’re dealing. Some things to research include having an understanding of what the other side wants, as well as what kind of result they are looking for. As the buyer/tenant, you may also want to research the history of the property, asking things like, “What was it previously used for?” and “Were there any problems with the place?” If you’re the seller/landlord, you can look into what challenges the buyer/seller might be facing or what kind of outcome they are hoping for.
The other important factor in commercial real estate negotiating is having patience. Some people go into negotiations and want to get them done quickly. While commercial real estate negotiations may not be everyone’s cup of tea, if you try to rush things, chances are, the results may not come out in your favor. Taking your time helps you with your strategy and the pros and cons of various options. It also sends a message to the other party that you are standing firm on your terms. If they think that you might walk away because they are not willing to give in on something, then your chances of getting what your want can be considerably greater.
Coming prepared to the commercial real estate negotiating table takes a little extra work, but it is certainly worth it when making a deal is your ultimate objective. And, being patient during negotiations, taking it one point at a time, can give you an advantage when you really want to get what you want. Of course, there is always the possibility that neither party gets exactly what they’re after. You have to be prepared for that, too. Typical commercial real estate negotiations end up with both sides getting something they both want. And that’s ok. But, top negotiators agree that being prepared and being patient can definitely improve the outcome of your deals.