Wednesday, 01 June 2022 13:38

How to Negotiate a Corporate Real Estate Contract

There is an art to negotiating. In the corporate real estate world, deals aren’t on the table for long and can be very competitive. When you’re looking to sign a commercial lease, it’s important to spruce up your negotiation skills to land the best deal for your business. Hiring transaction management services is one of the best tools you can have in that process. Keep reading to learn more about how you can leverage these services in your next transaction.

What is Corporate Contract Negotiation?

Leasing commercial real estate is often a complex and lengthy process. Although most commercial real estate transactions have standard steps, each transaction has its own nuances. Transaction dynamics and negotiations vary depending on many different factors, including industry-specific considerations, laws at the state, county, and local levels, market trends, and the parties involved.

How Can Transaction Management Services Help You?

When you’re managing a business, it can be challenging to stay on top of the ins and outs of the lease transaction. Here are a few ways corporate contract management services can help:

  • Tenant Representation
  • Site Selection and Feasibility
  • Site Acquisition/Disposition
  • Due Diligence
  • Lease Negotiations

Not only will transaction management services help you stay organized during the transaction, but they will also help you get the best deal through effective negotiation.

What Are the Components of Effective Negotiation?

Communication

Communication is the most crucial aspect of the negotiation process. Asking the right questions and clarifying the terms will help ensure all information is gathered prior to signing a contract. When using a third-party representative to manage the transaction, it’s essential to have strong communication amongst all parties involved.

Interests

Both parties involved in a transaction have their own interests. The best deals occur when both parties are in alignment in regards to their interests. A good negotiator will figure out the other party’s interests at the beginning of the process and explore opportunities to best meet them.

Relationships

The relationship dynamic plays an important role in any negotiation. Transaction management services help to effectively manage the relationship as your negotiation unfolds. You can strengthen the relationship by taking the time to build rapport and by meeting your own high ethical standards throughout the process.

Options

In negotiations, options refer to any available choices that parties might consider to satisfy their interests, including conditions, contingencies, and trades. Having options available during the negotiation will provide leverage when ironing out the terms.

If your business or organization needs assistance creating a successful strategic real estate plan, reach out to us today at Lavoro Consulting. We are here to function as an extension of your team and ensure your commercial real estate decisions positively impact your bottom line and contribute to the overall success of your business.

Learn More About Our Transaction Management Services

At Lavoro, our goal is to put your properties in the best financial position. We offer strategic and pragmatic solutions so you can feel confident in every real estate transaction you make. Our experts understand the unique challenges that businesses face to operate in multiple locations. As such, we know how to leverage your real estate transactions and portfolio strategy to streamline operations while maintaining high levels of customer and employee satisfaction.

We have extensive experience in both public and private-sector work in the corporate, retail, hospitality, and transportation sectors. We’ve worked with clients nationally and globally to provide workplace and portfolio services that make your spaces work for you.

Schedule a consultation today to learn more.