Negotiation: Commercial Real Estate Phx AZ (Part 2)
- Most negotiations fail because one or both parties viewing the negotiation as a zero-sum game – meaning that one or both parties believe it is impossible for a win-win outcome. We have found that all too often negotiations become more about winning than reaching one’s goal for the negotiation. We have been involved in many negotiations where one or both parties develop a position on an issue that prior to the negotiation they knew nothing about nor cared about. They simply wanted to win and save face in front of the other party. For this purpose, it is important to understand what the best outcome of a potential negotiation looks like prior to entering the negotiation.
- In order to “maximize the pie” or expand the negotiating options on the table, you must follow a disciplined negotiation strategy and process. Having participated in hundreds of negotiations we can truly attest that the best negotiations, where both parties walk away feeling good about the deal that has been constructed, follow a strict process where each party knows what to expect and has open and frequent dialogue. Give example
- Know, understand, and improve the position of your BATNA, or Best Alternative to a Negotiated Agreement. Too many parties find the “perfect” scenario and drop all alternatives too early. When negotiating, alternatives create power and provide knowledge. It is critical to develop and continue to nurture the best alternative in case negotiations fall through on your first choice.
These are just a few tidbits of negotiation lingo that we have implemented in a 7 series process map that outlines each negotiation within the Commercial Real Estate Phx AZ field. Please feel free to call a Member of the Menlo Group Commercial Real Estate Phoenix AZ team to sit down and develop a negotiation strategy for your property. Whether it is a renewal, expansion, additional location or new property you are looking to move into, we look forward to negotiating on your behalf.
Menlo Group Commercial Real Estate Phx AZ