Planning a Strategy
Do Your Research
Some of the most important and effective elements in commercial real estate negotiations actually happen before you make an offer. If you come into the negotiations armed with knowledge and facts to back your offer, it may be easier for the landlord or seller to agree to a lower price, or other concessions, than if you just simply made a low offer with no justification behind it.
Know the Local Market
Arm yourself with as much information going into the buying process as possible. The state of your local commercial real estate market is highly important factor in setting a negotiation strategy. Are you in a buyer’s market, a seller’s market, a balanced market or a market where red-hot bidding wars ensue?
With the help of your representative broker, or through online resources, see if you can find out how long the property has been on the market and how many times the seller or landlord has lowered the asking price,
Understanding the Seller's/Landlord's Motivations
There is also more to doing your homework then running the numbers. Focus on the seller’s motivations, not yours, to negotiate a better deal. You will feel you have a more powerful negotiating position when you recognize the reasons for the other side to give in.
Making an Offer
You found a property. Now it is time to negotiate an acceptable deal. Aim high and expect the best outcome. Successful negotiators are optimists. Be sure to allow room to negotiate a mutually positive results. Win-win is always the best outcome.