Leasing Sales

How to Negotiate in Commercial Real Estate Without Burning Out

Every offer presented in commercial real estate should be positioned for the best levels of control and the desired outcome for your client.  The parties to the deal should be part of that positioning process, and your client is the ultimate beneficiary.

Do you control your offer and acceptance process?  Good documentation will help you do that.  Understand how to put lease and sale offers together with accuracy and relevance to the parties and property.  Don’t make mistakes; they can be costly.

A good agent or broker can add real momentum, control, and value to the listing.   They can also add strength to the marketing, the offer and closure process. 

business papers and graphs on table
Research the facts in all negotiations

Reasonable Commissions

A reasonable commission outcome should sit inside the transaction and its finalization for you (ensure that you have your legal appointment in place). 

Are you ready to close a few more sales and leasing deals?  Position yourself as a top negotiator.

What is an Offer to You?

An offer is the result of a lot of positive activities and positioning processes; it takes time to get to an offer on paper. 

man and women in real estate meeting presentation
Negotiate with skill based on researched facts

It all comes together when the buyer or tenant has reached a point of realistic cooperation.  You are the catalyst for that and the ultimate judge of just when people are ready to move on an offer and take the property for what it is.  Experience strengthens that judgement.

Gather some other information from the local area to help you with any property negotiation.

Market conditions should underpin the realism of the issue and give your client some comfort as they consider the facts of the deal. 

If the market conditions, the people involved, and all the facts of the offer made are to align, then you have a successful transaction.

business people meeting in city office
Know the people involved in the transaction

Putting the Negotiation Together Yourself

How do you craft an enticing offer for your client? Try some of these ideas:

  1. Create a short list of ‘must haves’ that your client wants satisfied.  Are those things realistic?  Keep them in the back of your mind as you negotiate.  Clear any questions on those things with your clients before you start any transaction negotiation.
  2. Pricing variables should be reviewed before you go on.  Have a price range to solve impasses.  Prepare your client for the facts of the situation and the property.  Have some comparable property information ready to use with either party to the transaction.
  3. Timing will be important, as offers and counter-offers have to be supported by correct and legal documentation.  Keep up the transaction momentum as it moves between the parties.  Once it starts, move it ahead and keep parties talking.  Resolve questions quickly and accurately.
  4. Make sure that all property documentation is ready to use, it is accurate, and it is comprehensive for the type of transaction.  Put everything in writing.
  5. Ensure that you check the availability of the property for the transaction intended and have the appropriate documentation ready to use.
  6. Prepare in advance for compromises that could work for your client.  Some ‘deal demands’ can be offset by ‘contra’ benefits.

So, all of these things will help you with negotiating an offer in a commercial real estate transaction.

As you move through an offer and a transaction, remember just who your client is and what they need in the outcome of the sale or lease.

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