What's up with Negotiation

Negotiation. Just one more step in the real estate process. And frankly, it's not the last. Yet this is one of the most crucial steps in the acquisition process. Not because your haggling for price (which is important). But because you need to be patient. Time. That's the name of the game. If you've fallen in love with the real estate property, or need it immediately, your most important negotiating tool has just disappeared. It's about giving ownership the opportunity to meditate on it's choices.

Now granted, if you are buying/renting in a hot spot this whole idea of time works against you and seller/landlord wins. One of the most amazing negotiators spent 2.5 years negotiating the right price for the right space. He wasn't in a hurry. He'd come back to multiple choices and ask if they can beat this price. Some did, some could not or would not. It didn't matter. He knew what he was looking for and he waited till his opportunities could provide it for him.

That is why it is so important for small business owners to be patient. They have an opportunity to work with a broker that has nothing but time. And a good broker will never work for the deal; they work for the small business owner.

Personal Touch is Still Key

I was just perusing the February 2008 Issue of Commercial Property News (CPN) when I came across an article that hit home for me: Lost Connection, Technology May Enhance Business; Industry Still Wants Human Touch. My mentor, a 30 year veteran in the real estate community, has always told me to pick up the phone and make an appointment for lunch, coffee, whatever; just connect face to face. I have to admit, it makes all the difference.

This week, I've been incredibly sick, yet still needed to move things along for clients. I've used technology as a primary source for communication. Emails come to my phone, which is next to me at all times. My computer is not far away as I need to pass along vital information for negotiation. Yet when my client said I need you at this meeting, I showed up. And that connection brought value to my client. As a result, the loyalty ticker just shot up with this client. On the other hand, because my voice sounds like a frog, I've avoided the phone at all costs. Information was communicated using technology. It was prompt and efficient. Nevertheless, another client was incredibly annoyed that I wasn't available via phone for that real-time interaction.

To sum it up, I concurr with the article. Technology has made commercial real estate more efficient. But it's the face to face that makes the deal.

How to marry office image and functionality?

I find that many business owners I meet are challenged in finding the "perfect" space. Typically location trumps all other considerations. Nevertheless understanding how your clients view your business is critical in the decision making process. If you are a consulting company with the majority of work done at the client site, then the image of your office may not be as important as the amenities such as hotels and restaurants. Yet, office image can be the deciding factor for clients when comparing two different companies of similar caliber. So, what's the secret? Frankly, it's having a conversation with someone who is trained to listen to your real estate concerns. This person's focus is to tease out how your business works and to match it with the appropriate real estate. So don't be scared to pick up the phone and talk to your local commercial real estate broker. They will definately guide you in the right direction.