One of the biggest challenges in commercial real estate is negotiating a deal that is agreeable to both the lessee and the lessor. It is in these negotiations that unskilled companies can really lose their chance at a preferred property and why most choose to work with an experienced commercial lease negotiations company. Yet even the experts need to carefully handle common obstacles when it seems as if the two sides simply cannot reach an agreement when negotiating. Some of the more frequently encountered bargaining issues can be avoided by good planning and good communication.
Time Issues and Backup Plans
Time constraints can really put pressure on a lease deal. When there is not enough time for what are often lengthy negotiations, a company can feel pressured into making an unfavorable decision. Rather than finding themselves in a "take it or leave it" scenario, it is essential for a business to begin lease negotiations on a commercial real estate property well in advance of when the new lease is set to take effect. This will provide ample time for a commercial lease negotiations company to determine what a tenant needs and then work with them to create a bargaining plan based on those needs.
The result is a company being able to go to the bargaining table ready with offers, answers, and more power than they would have if forced to reconsider conditions through every counter-offer. Working within a longer time frame also allows a business to create backup plans that can be put into effect depending on the direction in which the discussions are moving. This will improve the outcome since they will be prepared to either accept a lease that may contain a few less than ideal elements - or walk away from it.
Collaborative Negotiations Are More Effective
Every tenant wants all of their needs met, to have as many concessions as possible. In contrast, landlords want to lease their space to the best tenant while giving as few concessions as possible. While it is important that a commercial lease negotiations company be assertive enough to confidently bargain for their clients, negotiations that get too aggressive could hurt a deal, rather than improve it. Good negotiations work collaboratively, with agents on both sides considering the fact that both the tenant and the landlord will have to give some to get some.
Consider the Starting Point of Both Parties
Along with having the ability to negotiate collaboratively, success with commercial real estate leases demands that a tenant take a good look at both their own starting offer and that of the landlord in order to analyze them. Attempting to understand the conditions the landlord is dealing with as a way to work with them for a positive outcome becomes a real possibility to discover a workable solution for both landlord and tenant. By understanding what a landlord needs to obtain in a lease, the tenant could be more flexible with their offer so they can gain other concessions that will still be beneficial.
Obtaining a favorable commercial real estate lease in today’s competitive markets requires skillful, yet considerate negotiations. Getting the best results requires that tenants consider not just their own needs, but those of the landlord as well in order to come to the most favorable agreement. This kind of experienced bargaining is best done with the assistance of a commercial lease negotiations company that understands the common negotiating obstacles and how to successfully steer around them!