Category Archives: Negotiation Strategy

How To Advance Your CRE Negotiation Strategies

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By: Collin Wheeler, Vice President at JLL 

JLL-Keys-successReal estate is expensive. In fact, it’s usually one of the most expensive line items on a business’ financial statements.

A decrease in rent, real estate taxes or capital exposure can have major impact on the bottom line. Often overlooked, hidden liability within a lease document can also have consequences. In the ever-changing economy, I frequently see organizations fall into a common real estate trap when they lose sight of financial impact, and make hasty, simple decisions based on landlord direction and lack of leverage.

Are you approaching your next move or occupancy decision? Below, I discuss a few tips to engaging in more strategic negotiations, plus insight into why working with a tenant representation advisor will save you money in the long run.

You might be shaking your head in disagreement (I get that), but please read on.  In addition to bottom line dollars, there are other avenues of liability and flexibility that are addressed.  In an age where business can change overnight (expand, contract or merge), flexibility within real estate situations are increasingly important.

Negotiation 101: Keys to Success

You can set yourself up for successful negotiation by being proactive, whether you are facing relocation or staying in your current asset.  There are two keys to getting what you want: time and leverage. Here’s why.

  • Time: If your lease is expiring in six months (and you haven’t engaged the landlord), you’re in a tough spot. At JLL, we involve the landlord no less than a year in advance of expiration. From the landlord’s perspective, he or she hopes to keep current, paying tenants in place. This means no down time (or lost rent) between tenants, no significant capital requirements by a new tenant as an enticement to lease, and no additional costs associated with a new transaction.  Therefore, most landlords are open to and appreciative of early negotiations.

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