city buildings commercial real estate negotiation

Commercial Real Estate Brokerage – How to Solve Negotiation Objections Faster

In commercial real estate brokerage, there are many phases of any sale or lease transaction where negotiation pressures and objections will occur.  It is a good idea to have a ‘base strategy’ to use with any objections that may arise.   Take control of the matter and work through the alternatives for the best outcome for your client.  You can resolve most negotiation problems with a property sale or lease, and you can do so professionally and efficiently.  (NB – you can get plenty of negotiation tips in commercial real estate brokerage, in our Snapshot program right here – its free)

Top agents know how to move on and through a negotiation issue.  They have a method of approaching things, and they have seen many variations of the typical property ‘hurdles’.  Sure, they won’t convert everything to a positive outcome, but they will achieve a ‘high success rate’.

It should be said that some people involved in a property transaction may be too unrealistic or overly demanding to the situation at hand or the current market circumstances.  Common sense prevails in any property agreement.  The conditions of the local property market will also have an impact.

You then are the mediator, and you are also the catalyst for a solution given current market circumstances.  Your job is to keep things moving in the right direction.  Through diplomacy and common sense, you can move your client and any other party to the commercial property transaction to common agreement.

Strategies to Consider


Here are some tips to help you with your sale and lease negotiations:

  1. Know the facts of the market and the competing properties. Use local information from other transactions as proof and evidence as you move on an discussion point.  It is fair to say that preparation and research will help you with ‘transaction momentum’.   It is notable that local property information allows you to show transaction confidence and to be more direct as you negotiate.
  2. Remember your client and their instructions to you as part of accepting the listing and or moving through the stages of negotiation. Expect that they may need some conditioning to understand the facts of the property market today and just where their property is positioned.  Use accurate local market evidence to support your recommendations and claims.
  3. Diplomacy and professionalism should be maintained as you move through the negotiation. Keep records of all the conversations and discussions.  It is common to see people in a property negotiation change their position and actions.  Watch the people as they move through the points of disagreement or offer.
  4. Seek clarity and document the offer or counter offer. Every property transaction should be accurately reflected in good documentation for the property type and location.  If you don’t know how to represent an agreement between the parties accurately, then seek legal help before you ‘put pen to paper’.
  5. Call for a conference or meeting to move people ahead in a discussion and towards an agreement. Don’t negotiate across the telephone unless it is the very last resort, perhaps due to proximity.  If you can see the people to the sale or lease deal and as part of the transaction momentum, then do so.  Personal contact and discussion will move most transactions ahead.   Telephone conversations are always difficult are not recommended as ways to move any property offer ahead; it is too easy for a person to decline an offer across the telephone, or simply ‘hang up’.
  6. Use stories from the local area as you engage and help people to move ahead with a stage of an offer or counter offer. Local stories help the parties of a transaction see that they are not alone in ‘adjusting to market conditions’.  People listen to ‘stories’ and will engage more directly in discussions and thinking; that can then break an ‘impasse’.  Story telling is a good business strategy to adopt with your property negotiations.
  7. Practice negotiation situations regularly within your team using the common property challenges that you see and experience in your property market. The members of your team will have ideas to share from their listings and current negotiations.   Share your ideas and your experiences; role play the processes of negotiation.

The message here is that you can improve your property transaction results through practice and diplomacy.  You can help the parties reach an agreement more practically and directly.

Adopt a position as the ‘solution provider’ in commercial real estate.  Show the parties to the transaction how others have adjusted to the decision challenge.  Use local market evidence to do that.   A positive property result for your client is generally a compromise of several things, given current market circumstances.

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