renewal: Knowledge is POWER!
- 08/15/12 01:01 AM
The more imbalanced the knowledge in a negotiation, the more the side with greater knowledge can take advantage of the other side. So many times in life we try to do something ourselves because we're too cheap to pay an expert. That's why the floor tile is crooked in my bathroom and the faucet at the kitchen sink is loose. Sure I can do it, but can I do it well and without a lot of education and practice. It's the same in business. What am I doing myself that I should be paying someone else to do? Website? Marketing? … (0 comments)
renewal: The American Business Mantra – Do More with Less
- 06/07/12 07:36 AM
Feeling tired and overworked? According to a study by the National Sleep Foundation, the average employed American works a 46-hour workweek and 38% of the respondents worked more than 50 hours per week. You may be surprised to learn that this contributes to commercial tenants paying far too much when they renew their leases. This can happen when renewing a lease becomes a ‘check box’ item on a To Do list without leaving adequate time to consider the most important negotiating factors. Being overworked and having too little time are not the only reasons tenants can overpay when renewing their … (2 comments)
renewal: Top Tips for Negotiating Commercial Leases - #12 Get a New Base Year on Renewal
- 04/11/11 10:57 AM
Many companies renew their leases without engaging a professional tenant rep. Their logic is usually something like, "I know my landlord and trust him. We have been in the building for years so I don't see any reason to get a tenant rep involved and potentially get in the way of that good relationship. Besides, maybe the landlord will give me a better rental rate if he doesn't have to pay a commission." That sounds logical, but in 27 years in the business I have never seen that actually work out to the tenant's advantage. Even in situations where the landlord … (0 comments)
renewal: Top Tips for Negotiating Commercial Leases - #5 Create a Bidding War
- 02/07/11 10:44 AM
Scarcity is the basic economic problem that arises when someone has unlimited wants but limited resources. And guess what? Tenants are the resource that landlords want the most. I don't care if you are in Dallas, Plano, Frisco, Richardson or Tokyo. Landlords are the same. Tenants create value in their buildings. So it's important to create a bidding war for your business. This requires that you have several lease alternatives (real or perceived) and that all landlords know that other options exist. Get proposals from each. Talk to them about certain features of other proposals you have been able to get. Even … (2 comments)
renewal: Top Tips for Negotiating Commercial Leases - #1 Start Early
- 01/13/11 02:13 AM
Start early. Many companies wait too long before starting the process. Landlords know they don't have to be as competitive if you don't have time to shop around. Let's say you approach your landlord 2 months before your lease expires. He knows that you don't have time to go search the market for other options, negotiate with those landlords, get a lease signed, get construction finished, get an internet connection set up and move in that amount of time. Fewer options - higher price. So guess what? Instead of offering you a competitive rental rate that … (2 comments)
Anything and everything related to corporate real estate - a company's use of real estate. This is usually a company's lease or purchase of office, warehouse or retail space.
The more imbalanced the knowledge in a negotiation, the more the side with greater knowledge can take advantage of the other side. 
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