The process of negotiation is quite special in commercial real estate. So many parts of the business are impacted by negotiation between the parties. For example:
- Winning an appointment with the property owner – It can take a lot of telephone calls and letters to open the door on a meeting with an investor or property owner.
- Converting a listing on an exclusive basis – Many owners are ‘happy’ to list their property openly, but less inclined to exclusively list unless they know that their chosen agent has the skill and commitment to move things ahead.
- Attracting marketing funds paid by the client for the upcoming listing – Marketing funds are a part of commercial property sales and leasing. The best agents convert the funds as they close on the exclusive listing. They then have the time and the promotional ability to attract greater levels of inquiry for the property.
- Inspection processes – As an inspection is underway, offers may be made or discussed. Getting those offers on paper in the correct legal way is a factor of negotiation.
- Closing on the deal – Many challenges will evolve in finalizing a property deal. Local market awareness and professional skill will usually help with the closing of the final negotiation. That is not always the end of the matter of course; other things will have to be done to keep the transaction moving to finality.
Here are some special tips and comments in a report about the process of negotiation in commercial real estate brokerage.