In commercial property sales and leasing, the objections you will receive from your prospective clients are many and frequent, and they are usually all unique. The buyers and the tenants that you attract or work with as part of closing a transaction will all have individual targets, concerns, and situations that they want resolving. Add to that the listing variables of the location, the property, and the elements of the deal.
So there are some ‘balance’ issues in every property negotiation for you to work through. Strive to be better at negotiation and client contact. Expert negotiators in commercial real estate are in short supply.
Prepare for a Negotiation
There are plenty of things to work across and through, and you have quite a few things to think about before you reach a negotiation with the parties. Prepare and plan your brokerage activities, marketing, inspections, and bargaining.
What do you need to satisfy with a buyer or tenant before they bring a negotiation to the next level or finality? Handling objections becomes a critical component of the ‘toolbox’ for agents today.
Understand how to negotiate in the sales pitch and on the close of a listing process. The good thing is that you can practice your negotiation skills every day and the dialogues that are important for your property market.
Here are some rules to prepare you and guide you in negotiation in commercial real estate:
- Location factors – some things are ‘common’ when it comes to a property negotiation or marketing process. You hear them often when it comes to property sales and leasing situations. Look at the location when it comes to surrounding businesses, nearby listings, property trends, and recent transactions. There are positive and negative factors locally that will impact your listing and your negotiation. Be prepared by knowing what the facts are in the location.
- Property market trends – go ‘deeper’ when it comes to actual price and rent results from a transaction. Share information with your other agents so you can see and know what is happening and make comparisons with closed sales or leases and the future supply and demand.
- Client requirements – every client is different when it comes to their priority or targeted outcomes in leasing or selling their property. Get closer to those facts because there will be some impact flowthrough on your negotiation and transaction or bringing a deal to finality. It is all about reaching an agreement in the best way possible for your client and their property challenge. Sure, there is always a degree of ‘wheeling and dealing’; however, the targets of your client should be well known as you move to a successful transaction.
- Local area supply and demand – the future trends and upcoming developments locally will impact your property market. Look for those trends and track them. Be prepared to talk about them as you pitch and present your ideas to the parties to a lease or sales deal. As part of that have some precise information about price and rent benchmarks to keep any transaction in the ‘realities’ of the location and the current property market.
- Documentation – as you move towards and through negotiation, have your documentation ready to present to others and use. The accuracy and timeliness of presenting your documentation in a negotiation will be a critical element in closing or advancing a transaction. Always be in control when it comes to your documentation. When someone tells you that they are ready to make an offer, get it in writing and a legal form quickly. Preparation and accuracy of documentation will help you move ahead in any property negotiation and across the objection handling process. Any verbal comments made by others should be also be acknowledged and documented.
Use these ideas to control and handle your commercial property transactions and objections. A firm approach to negotiation and mediation will help you move ahead and close on more deals.