Sealing the Deal: Innovative Negotiation Skills for Commercial Real Estate Professionals
When working in commercial real estate sales or leasing, you will handle various properties differently for your clients, depending on the property’s uniqueness and location. Therefore, it’s important to carefully consider your approaches to negotiating with all parties involved in a transaction while targeting the results that your clients seek.
Preparation is essential for achieving successful results in any commercial real estate sales or leasing negotiation. Know everything you can about the property and the client’s requirements; develop your promotional strategies.
Negotiation Leverage Points
Given the recent changes and adjustments in the property market, here are some ideas to help you maximise your results in sales negotiations.
It’s important to consider and optimise every negotiation for a sales listing based on the parties’ intentions, the property’s attributes, and the unique market circumstances.
Look at these ideas and see how they can be applied in your location and with the properties you prefer working with.
1. Research all the facts
Before listing any property, empower yourself by conducting thorough research on the location and property type. This includes examining the market values, potential income streams, and comparable sales data.
Understanding the property market trends in inspections, negotiations, and the end price will help you navigate the sales process confidently.
2. Supply and demand elements
Stay ahead by vigilantly monitoring your property market for supply and demand pressures. Keep a close eye on upcoming developments and new projects nearing completion.
Developers may offer incentives and bonuses to influence buyers, significantly impacting market enquiry and transaction outcomes. By staying informed, you can proactively adapt your strategies.
3. Explore the Motivations of the parties
Understand the seller’s motivations with all of your listings. The seller often will not be completely open about property facts and transaction requirements.
Always ask more profound questions to get to the natural momentum and leverage points of a property listing and sale situation. Ask more questions when in doubt, and keep notes from those discussions.
Disagreements are common in commercial real estate sales and leasing today, and your notes and record-keeping are the only processes that can support you through negotiation. As you talk to the parties to a transaction, take your notes and record them for later support or discussion.
4. Feature list for promotional impact
Position the property for maximum impact and the best results. Every property taken to the market for sale will have feature points that you can apply to the marketing message and advertising campaign.
Help make your property marketing message stand out with a target audience in mind. Good marketing campaigns are simple and use the target marketing approach. So, who are the buyers, and how will you reach them with your property marketing campaign?
5. Showcase the full property opportunity
Showcase the growth potential of a property and do that through its marketing campaign. When you consider a particular property and the target audience of buyers, there can be some ‘upside’ that you can feed into the marketing message.
Perhaps the property could be considered for a redevelopment or a change and upgrade of the tenant mix. Most properties have an ‘upside’ that will interest potential buyers. Shape that ‘upside’ into the negotiation for the property and any promotional material.
6. Local stories always work
Gather some factual and accurate stories about the property and its location. Buyers will be interested in the property stories, which can help you influence their purchase decisions.
7. Use Images and Media tools
Use photographs on your tablet computer to negotiate with the parties. Digital pictures will give you leverage as you discuss the negotiation and buying decision.
Take a good selection of real estate photos from around the property, both inside and outside, to show the advantages of ownership and occupancy from many angles.
Simplicity Works Well
Simple ideas like these will help you with your negotiation strategies in commercial real estate today. Don’t complicate the property listing or promotional strategy; do your research, then strategically open up the property facts to a target market so the property gets full exposure.
In any property market, you can be the real estate service solution to find buyers and tenants that could be in your target market. Campaign promotions can do that. Then, prepare yourself and the property for a favourable negotiation and have all the required facts at your fingertips.
