Whether you are a seasoned office lease negotiator or a first timer, it’s important to be prepared before entering into office lease negotiations. The more prepared you are, the more confident you are, therefore your outcomes are more favorable.
Below are a few reminders to consider before you enter into your next office lease negotiation.
1. Information is Key – Information is key to most successful negotiations. The more information you have the better you position youself in office lease negotiations. You need to do some serious research and gather all the information possible……. or have your commercial real estate agent do it. This puts you in a position to compare all the alternatives apples to apples and strengthen your negotiating position.
2. Create Leverage – Leverage is also key to a successful negotiation. How can you create leverage? Knowing more information than the other party, give yourself lots of time by starting the process earlier than you think you need to, be prepared to walk away, having more than one option, etc..
3. Be Fair – Don’t try to win at everything! You want the other party to feel like they have won also. A successful negotiation should be a win / win situation. If it’s not then one party may feel like they got the short end of the deal.
4. Know Everyone’s Goals & Objectives – Again this points back to #1… Information. Knowing what everyones motivations are can help you negotiate a great deal for everyone. You want to truly understand each others needs and make sure that you are both on the same page regarding terms, conditions, etc.. Everyone interprets things differently so make sure you both understand and agree on every item.
5. Be Cool and Calm – Never yell, get defensive, or take things personally. This is business. Alway remain calm, cool, and collective. No one wins when things escalate into yelling and screaming.