Deflecting inquiries regarding budget?
I wanted to pick your brains about an issue that comes up often as a tenant representative (new to the game). I often am asked what my client's budget is for rent- while I know it is in their best interest not to spill the beans up front, I'm not sure how the best way to deflect this is? Anyone have something that works well for them? Thanks.
[{"id": "cw80u3p", "text": "Not a tenant rep, but I'd deflect with the idea that it all depends on location, finish updates, configuration of the space, etc. You may also mention that a lot hinges on the TI package. You'll definitely want to research what the local market looks like (from a CBRE/Colliers/DTZ report) so that you're informed as to what you might expect. I guess a canned response could be \"Just below market, but we'd be willing to pay a premium for x, y, and z.\"", "replies": [{"id": "cw894ml", "text": "if someone told me their budget was below market I'd pretty much blow them off.  There is nothing wrong with getting a deal, but if you NEED a deal you are wasting peoples time.\n\n--edit-- its not a terrible response, but just in context of a new agent who is running into this question frequently, i'm not sure I'd do anything to indicate there is a budget issue.", "replies": [{"id": "cw8ient", "text": "Agreed. The below market line is probably bad advice for someone getting started. It could easily come across as cheap. I think using the locale, configuration, and finishes could help deflect though.", "replies": [], "depth": 3}], "depth": 2}, {"id": "cw8x37k", "text": "Thank you this a great way to deflect. I'll try it. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "cw892l4", "text": "1 if you are consistently being asked this other brokers are not taking you seriously and are probably judging whether you are wasting their them.  This isn't usually a negotiation edge question (at least in my experience in CRE), it is a \"are you wasting my time?\" question.  \n\n2 \"my client is like anyone else, they want the best deal possible.  That said they are capable of paying what is needed to get a space that meets all their objectives\"", "replies": [{"id": "cw8x24y", "text": "Thanks- it's not coming from brokers it's coming from landlords who own small properties with 2-3 retail spaces. I appreciate the input.", "replies": [], "depth": 2}], "depth": 1}, {"id": "cw8tlhd", "text": "Just give a range. It won't kill your ability to negotiate.", "replies": [{"id": "cw8x3m9", "text": "Good idea :) ", "replies": [], "depth": 2}], "depth": 1}, {"id": "cwa9xk5", "text": "Are these questions coming from owners who are marketing the space with a negotiable rent? If not, and the rent is listed, your answer should be something like \"your property is on our list of options\". Simple as that. Echoing another commenter, as a landlord rep, that question is used to weed out time-wasters 95% of the time. ", "replies": [{"id": "cwbrzbm", "text": "Yes, it's usually properties that are listed as negotiable ", "replies": [], "depth": 2}], "depth": 1}, {"id": "cwbk483", "text": "I would be honest with them and be confident in your \"homework\". \n\nIn your case. it sounds like the landlord (LL) is asking this question as a barometer for how to position your tenant in their portfolio. Ie. if the LL has a Class A space and your budget is in a Class B/c then it can save time when negotiating the best market rent on both sides. honesty is key, and if the landlord sees your trying to help him/her out and be a proud (qualified) tenant, the LL will be more inclined to put your tenant in that space.", "replies": [], "depth": 1}]