Successful negotiations require preparation and a clear idea of what your business needs, but they also demand a certain amount of flexibility. If you are unable to work with the other party to reach something you can both be satisfied with, you might find yourself unsuccessful in your negotiations. Here are a few reasons why negotiations can fail, as described in the article “Develop Negotiating Skills”:
#1 Refusing to Recognize the Other Party’s Perspective
It is important for both parties to understand the viewpoint and limitations of the other side. For instance, a landlord might be limited by finances, and thus cannot provide a certain service or rent below a certain rate. The key is to listen well. Ask your landlord questions to get an idea of their attitude towards certain things and where they can be flexible. Your goal in negotiations should be to get a feel for the parameters of the other party, and then after putting yourself in their situation, to convince them to listen to your side. You can then craft a lease keeping in mind what each side is really able to agree to.
#2 Too Much Confidence
Being overly bold and demanding could potentially ruin a good deal for both sides. For instance, a tenant whose presence is valuable to the landlord (they are an anchor tenant or are good in some capacity for the surrounding tenants) approaches a landlord to ask for a rent reduction because their sales have been low recently. However, an overly confident landlord might decide to part ways with this tenant and rent the space to another business, causing a lot of headache for them and not benefiting the property as a whole. The landlord could have decided to agree to lower rent for a short amount of time with increases scheduled as sales went up.
Likewise, a tenant could demand too much from a landlord, thinking that the landlord has no other options. For instance, a tenant might want to be allowed to break a lease if a certain other tenant leaves, but the landlord might know that this anchor tenant might not be renewing their lease and thus unable to make that agreement. Know what you need to insist on, but if you are really interested in a space, also keep in mind what might drive the landlord to spare themselves the headache of difficult negotiations and work with a tenant who might provide different benefits to the property.
#3 A Win-Lose Mentality
One easy way to sabatoge a negotiation is to treat it like a competition. A negotiation is not a win-lose situation; in the most successful kind of lease, both sides are able to meet their objectives. Instead of trying to get as much as you can out of a landlord, approach the process as a collaboration and determine where you can be flexible in helping a landlord get what they need. It is a give and take—the more you can offer them, the more they are willing to help you. In this approach, it is inevitable that you might have to give up a little, but this might ultimately be the best road to an overall good deal and a strong tenant-landlord relationship.
Good lease deals are born from an ability to understand the other side’s perspective, a willingness to help the other party achieve their goals as much as you can, and an overall attitude of collaboration and teamwork in crafting the perfect lease.
If your business is interested in learning more about office suites for rent in Overland Park, give us a call at 913-685-4100. We can help you calculate square footage and work with you to determine other office space needs, such as what amenities you need and the best office layout for your business. Give us a call today to discuss spaces or set up a tour!