Step 3: Negotiating Your Next LeaseBY Phillip Chapman
Bargaining is where the "give-and-take" happens. If you think success means all take and no give, you won't capture real value. You make and manage your concessions in bargaining. When you give and take that which satisfies both parties' interests, you will build a lasting relationship and a fruitful outcome. During the Bargaining Stage, you continue to create value, and with trades, finally capture value.
To be trusted, you must be genuine!
There are two tools you will need from your negotiator's toolbox in the Bargaining Stage, the Probe and Creativity.
To capture real value during the bargaining process you should have prepared a series of questions and or conversation topics that provide an opportunity to understand more about the Landlords short, medium and long term view on their investment, The Probe. And be prepared to express your commitment to the longer term view as a subtle capture of value is to extend the lease term so that the document underlines the value of the business. (Good will these days is very much dependant on the length of the Lease term as well as the commercial details).
When it comes to the Creativity during the bargaining stage, you will be able to base these on the BATNA (Best Alternative to a Negotiated Agreement) and further to be prepared to review alternative suggestions from across the table as well. This is always a good time to remember that the process doesn’t have to be concluded there and then, use alternative suggestions as a means to leave the bargaining table to consider what has been discussed, what new information or alternatives can be weaved into the “give and take”
Bargaining is your "face-time" with the other person, even when you are not face-to-face.
Like all interpersonal relations, emotions can help or hinder progress. Specific negotiator's tools and behavioral skills matter greatly here. Finely tuned communication skills are critical at this juncture as you explore options to create value and execute trades to capture value. You will be most successful when solutions satisfy everyone's needs.
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Lease 1 Retail Leasing Do You Want A Better Deal On Your Lease? "Retailers don't get what they deserve... they get what they negotiate." Lease1 is the leader in its specialist field and is committed to providing personal, timely and cost-effective services to save tenants time, money and stress in their lease negotiations. Securing and protecting the commercial terms of our clients’ leases is our core business, supported by wide-ranging tenant consultancy services, encompassing lease information and research, site sourcing and selection, dispute resolution, retail franchising and portfolio administration. Our industry-leading Lease1 service adds security and value to a retailer’s business through professional lease negotiation and tenant representation on: • New Leases • Lease Renewal • Lease Options • Rental Research • Site Selection • Dispute Resolution • Crisis Management