In commercial real estate there are generally a few things that people fear. When you understand that factor you can use it as leverage in a negotiation for property sales or leasing. Fear is the basis of some emotions that come out in any property listing, lease, or contract; people can panic about the deal or the property situation. When you manipulate the fear, you manipulate the deal and that can be a powerful negotiation tool.
Ultimately people want to solve a problem when they approach an agent and they have a level of concern behind the process. Here is a list of the most common anxiety issues that we see today in the industry today:
- Loss of a major anchor tenant and the upset to the tenant mix as a consequence
- Needing a new tenant and the trepidation of not getting one soon
- Lack of enquiry for the property and the panic about no result
- Must sell and the apprehension about the process
- Concern about loss of rental
- Not finding a buyer for the property
- Alarm in losing money on a sale
- Dread about not selling or renting at the right price
- Distress in lowering the value of the property
- Phobia about spending money with little or no result, etc
A good conversation supported by direct questions will help you identify the right ‘fear factors’ relevant to the property transaction. Those ‘fear factors’ will be trigger points for decisions and acceptance.
When you are working with a client or prospect for the first time, look for the pressure points and the things that are worrying the person. Sometimes the discussion will not be obvious and a level of rapport or trust will be required before the person opens up on issues and ideas. If you have known the person for some time, the investigation is a bit easier because they will generally open up sooner and tell you what they think or what they want.
When you really know what the client is worried about you can focus through it and use it to get decisions. In saying that always offer the client a few alternatives or choices; decisions are always easier in commercial real estate if the client has some choices.
So your recommendations should involve shortening or removing the fear factor. Offer the client some solid strategies that clearly target their property problem and solve it. Put yourself in the property solution and all of a sudden the listing or negotiation is a lot easier.
Commercial real estate negotiation does not need to be hard. Learn more about negotiation using important skills like these. As professional salespeople we should develop advanced communication and negotiation skills for all types of property sales and leasing situations.