One of the first lessons I learned when I started in the corporate world was to never approach my boss with a problem that wasn't also immediate followed with an idea for a solution. He taught me that screw ups, obstacles, and changing circumstances happen, but just walking in without a solution was not an … Continue reading What do you mean, “you have no idea?”
Category: Negotiations
What’s your back up plan?
I can't even remember how many times I've had deals go sideways when everything seemed to be going so well. It’s easy to get focused (and lazy) when you have an ideal transaction that should be a win-win. The price is right, the terms are okay, and everything seems to make sense. But for lack of a … Continue reading What’s your back up plan?
Information Asymmetry in Real Estate
Information asymmetry is a challenge that has existed within the real estate industry since the beginning of time. Whether we are dealing with agent-principal conflicts as they relate to adverse selection in a lease negotiations, there is usually one party that has more information than the other. It’s not a perfect market and decisions don’t get made at … Continue reading Information Asymmetry in Real Estate
How’s the market?
It's a question I get a lot, and here's the basic answer: If you hire the right broker, it doesn't really matter. From a tenant broker's perspective, I've seen unbelievably high-priced rents in the midst of "terrible" markets and world-beating pricing achieved in "strong" markets. Instead of thinking about the market in terms of "strong" or "weak," … Continue reading How’s the market?
What kind of landlord do you have?
I was just asked by an associate to help understand a little bit about a landlord that I've had some experience negotiating against. When considering how to approach lease negotiations, it's important to know the type of landlord you have and their underlying motivation. We'll go through a few common types of landlords that you'll … Continue reading What kind of landlord do you have?
It’s more than just dollars per square foot
One of the goals I consistently try to tackle with clients when their lease is set to expire is uncovering ways to help them reduce real estate spend versus their last lease. While getting a more aggressive deal than their previous lease is an obvious way to reduce costs, the other way to reduce spend … Continue reading It’s more than just dollars per square foot
The biggest secret to successful negotiations
It's simple, really... Have a plan and start early. I wrote about this as part of a post a few weeks ago in relation to the amount of time it takes to complete a deal, but think it's worth adding some detail. Starting early and controlling the pace of negotiations is a very powerful. Time … Continue reading The biggest secret to successful negotiations
3 reasons to start negotiating early
I was speaking with a client about his pending lease expiration. He has 13 months before the expiration date and felt there was plenty of time to address the project once the summer comes. He is a major tenant in the building and by his rationale there was no reason to expect that the landlord wouldn't … Continue reading 3 reasons to start negotiating early
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