Commercial Real Estate Negotiations
What are some helpful guidelines that you and your agent should employ when negotiating a lease and specifically an industrial property?
[{"id": "c6wjml1", "text": "Your agent should be able to tell you how the property compares to others in the market, what is typical for lease term, rental abatement and tenant allowance for buildout.\n\nUltimately the landlord will decide what concessions they are willing to make and the tenant decides how much they are willing to pay. These can be very individual and are not always directly tied to the market conditions.\n\nIt's also important to know what the tenant or landlord's goals are in leasing the property? Do they want the deal to get done at any cost? Oftentimes there are outside business factors that make getting a lease done sooner rather than later worth more than saving a few dollars on the lease. Other times a company has more flexibility and getting the best deal will be more important.", "replies": [], "depth": 1}, {"id": "c6wkbuv", "text": "It all depends on how stuck you are on a certain area, quantity of the market, are you able to engage offers on multiple properties within a single area?  What value will you be bringing to the property over the long term, to the other tenants of the industrial park?\n", "replies": [], "depth": 1}, {"id": "c6wua6m", "text": "I'm an Commercial Real Estate agent in NYC. In NYC property owners and buyers are very educated and tend to be very difficult negotiators. \n\nIf you are having ANYONE negotiate on your behalf you have to be on the same page with them and TRUST them. Even though a real estate agent expects to handle all communications in the negotiation, if you dont know him, insist of being present during all neogitations.\n\nIf u want to be hands on in finding a property and negotation, you can always use your lawyer to represent you. A lawyer legally can broker real estate transactions.\n\nA real estate agents goal (they dont ever admit this) is to get a deal done. Where the deal is done doesn't matter to them. But your goal is to get the best price possible price. However if there if you have a good relationship with a good agent, you will have confidence they will work in your interest. \n\nThree quick tips I can give you.\n1) Low ball your offer but ALWAY present hard evidence on why you are coming up with that low number.  Present hard evidence like 1) Price Comps 2) Deficiencies in the property 3) Problems with location. 4) Economy outlook. DO NOT BE EMBARRASSED TO LOWBALL you are running a business its your livelihood.\n\n2) If you give up any concessions during a negotiation, always ask for somethng back. Negotiation is a compromise. If you are not trading concessions you are not compromising. You are being taken advantage of. \n\n3) Always try to understand the point of view of the owner. First you will subconsciously might be able to figure out where the deal can be done  and secondly you will be able to relate to the owner on a personal level. That encourages the owner to be loosned up. If you are negotiating through an agent- make damn sure that he does it on your behalf. \n\nFor more information I have a blog visit www.jondavidbrooks.com", "replies": [], "depth": 1}, {"id": "c6wzmcq", "text": "There is a lot of information available on the market rents at loopnet and costar. This information is available even with a free membership.  Since your goal is to get the lowest possible rent, being able to pick and choose the right comps is very important.\n\nThere are a lot of areas where the industrial segment is still very weak. If you happen to be looking for space in one of those areas, you are in luck. Information is your friend.\n", "replies": [], "depth": 1}]