The negotiation strategies that you adopt in commercial real estate brokerage should be refined and practiced over time. Prepare for the negotiation well in advance. Understand the differences in all of your property listings and the challenges that your clients face. A good negotiation is a result of clear preparation, a gathering of all the relevant facts, and professional skill.
Understand the people first
Some of the people that we serve and connect with as part of a property transaction will have reasonable levels of experience when it comes to business, and contract or lease negotiation. They understand how to position themselves for the best results that they need to achieve.
As an individual in commercial real estate brokerage you should practice your negotiation alternatives and skills as they apply to particular property types with different challenges. That is why property specialization is a good thing.
Understand your listings for what they are, their uniqueness, and the trends of the local property market. Look at the factors of supply and demand given that they will have impact on property choices and property outcomes for both parties, be that in a sale or lease transaction.
Each year there will be changes in property market circumstances and opportunity. Prices will change, rents will change, and the unique factors of particular listings will have both strengths and weaknesses to work with and through as part of the negotiation. You need to be prepared when it comes to putting the deal together and bringing it to finality.
The 4 Rules to Address
Here are some rules of negotiation that can help you when it comes to the negotiations in both property sales and property leasing:
- Gather the fullest facts and details relating to the property, the deal, and the negotiation. You must have everything at your fingertips when it comes to encouraging an agreement. A lack of information will frustrate momentum and allow the parties to the deal some extra time to think about their position and their response.
- Remember your client in the process of the transaction. Your client will have certain targets and instructions to work to and through as you move the transaction to finality. Any instructions that your client may give you as part of the listing, the inspection, or the negotiation, should be well documented in case any of the facts become the centre of a dispute or disagreement.
- Use the right documentation for the circumstance and the property type. If an offer is to be made in any sale or lease situation, the complete facts of the transaction should be captured in writing on the correct documentation. All the facts, figures, and title details should be checked prior to the final documents being created. Should any of the property details be lacking or unsupported, seek the correct information before going any further.
- The complete and the final negotiation is usually the result of a number of small agreements and closures. Look at the transaction in a number of stages and steps that you will need to take the client and or the prospect through. Simplify the process so that the parties to the transaction can see how you will capture the detail, move the transaction forward, and achieve an easy and final settlement.
The commercial property transactions of today can be complex and protracted. Be prepared for every lease and sale negotiation with the correct facts supported by logic or strategy. The larger and the more complex the deal, the more information you will need to move ahead and through the negotiation.