Tips Tools and Tactics for Commercial Real Estate Travis White Newport Beach
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Every commercial real estate deal will involve heavy negotiation and in most cases the negotiation will be difficult or protracted. This is because commercial real estate is a logical property type and emotion does not play much of a hand in the outcome.
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The only way you can negotiate well is to use your knowledge of the local market, the property type, and investment principles to help you and give you leverage in the property sale negotiation. The more you know about the way investment property works in your area, the better it is for you.
Market trends Marketing methods Buyers and tenants Methods of sale or lease Market share Negotiation
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Conflict - This is stage one of negotiation. Find out all the elements of conflict through planned questioning of the parties. When a conflict item is identified, it pays to drill down into the item to get the fullest detail. Explain to the parties that you simply want to fully understand their concerns and help them with the property issue.
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Common - This is stage two of negotiation. When you have found out all the issues of conflict you can move into items of common interest and those things that will benefit the parties if the sale of the property proceeds.
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Confidence - Great real estate negotiators are confident people. This also rings true for all of the great negotiators of business over the years. In commercial real estate this confidence comes from a planning process for the negotiation before you start it in final phase.
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So these are the rules to use in a tough property negotiation. There are others but these are the easiest to remember and act on as the pressure to do the deal gets complicated.