I’m sure we have all studied the art of negotiating at one time or another. Whether you are buying a car or a house, or leasing office space, typical gambits are: ask for more then you expect to get, never say yes to the first offer, flinch at proposals, be willing to walk away, etc…..
Well last week I advised a client to walk away from an office space in Austin that he was dead set on leasing. He was in love with this space, had to have it, and unfortunately had reached the point in the negotiation where he started thinking: I have to have this office space and I don’t want to lose it to someone else!
The minute your emotions allow you to pass the point when you’re willing to say, “I’m prepared to walk away from this,” you lose in the negotiations.
Well, The landlord was being wishy washy in the negotiations, and knew that my client wanted this space very badly (my client did not have a great poker face) I did not like the way this was going so I advised my client to walk away from the deal. He did not like my suggestion, however reluctantly agreed it was the right decision. After all, it was just office space! If it’s meant to be it’s meant to be. There are worse things in life than walking away from an office space lease. The good thing is that we had other options.
The End Result?
Two days later the CEO of the brokerage firm representing the building owner called me. We ended up with a better deal than when we initially began negotiations. $40,000 less to be exact, plus the landlord agreed to turn-key 100% of the improvements we initially asked for.
All too often we let our emotions get in the way of our business dealings. Sometimes we must be willing to let go of what we have in hand, if we are to be free to explore better options or to make the other party regret losing our tenancy . We must cautiously determine what could be lost in this negotiation, but alternatively look for new doors which may open before us.
Determining your “Walk-Away” Point is sometimes the hardest, but always the most important pre-negotiation decision you must reach. It must be approached calmly and courteously, letting the other party know your reasons for walking away, however still leaving the door open for them to reopen the discussion. Never, look back on your decision. Again, if it’s meant to be it’s meant to be. Don’t be pressured into a deal that you are not 100% comfortable with.