One of the keys to successful long-term business relationships is having a healthy respect for the axiom: "Win-Win or Walk Away".
BUT it's more than just a 'cute' mantra. We believe that it's vital, if you really want to build a solid base of loyal customers, employees and suppliers.
Is it unrealistic to think that both sides in a negotiation can feel a genuine sense of satisfaction with a final position and mutual agreement? If both parties are willing, we believe that it is possible. And that remains true even when stiff negotiations are necessary to establishing the mutual respect and rewards needed by both parties! If a "Win-Win" outcome is not possible, perhaps it would be better for all concerned to "Walk Away" from the negotiations and pursue other options.
As Stephen R. Covey said with Habit #4 in his book: “The 7 Habits of Highly Effective People” ...
Seek agreements and relationships that are mutually beneficial. In cases where a "win/win" deal cannot be achieved, accept the fact that agreeing to make "no deal" may be the best alternative. In developing an organizational culture, be sure to reward win/win behavior among employees and avoid inadvertantly rewarding win/lose behavior.
In this POST, our friends Dale Willerton and Jeff Grandfield from The Lease Coach zero in on the aspects related to negotiating or renegotiating a Commercial Lease. Thank you Dale and Jeff for sharing these insights, drawn from your many years of experience!
Negotiating Commercial Leases & Renewals For Dummies
Commercial Leasing Tips for Commercial Tenants
By: Jeff Grandfield – The Lease Coach
For many business-owners, negotiating a good lease or lease renewal against an experienced agent or landlord can be a challenge. While an entrepreneur focuses on marketing and managing, savvy real estate agents and brokers are specialized sales people. Their job is to sell tenants on leasing their location at the highest possible rental rate.
As explained in our new book, Negotiating Commercial Leases & Renewals For Dummies (co-written with my colleague, Dale Willerton), tenants may go through the leasing process only two or three times in their entire lifetime – yet they have to negotiate against seasoned professionals who negotiate leases every day for a living. Negotiating appropriate leasing terms is vital for an entrepreneur as the amount of rent he pays will directly affect the business’ financial bottom line.
Whether you are leasing a new location for the first time or negotiating a lease renewal for your business, these are some money-saving tips for tenants:
Negotiate to Win: All too frequently, commercial tenants enter into lease negotiations unprepared and do not even try winning the negotiations. Often, these tenants mistakenly set their sights on just striking a fair deal. This usually plays right into the leasing agent’s hand as he/she is most certainly negotiating to win the best deal for his/her boss – the landlord. If you’re not negotiating to win, you won’t win … negotiate assertively!
Be Prepared to Walk Away: Try to set aside your emotions and make objective decisions. Whoever most needs to make a lease deal will give up the most concessions – tenant or landlord. Developing a mindset that includes walking away from any deal that doesn’t suit your needs will save you time, money, and aggravation.
For a copy of our free CD, Leasing Do’s & Don’ts for Commercial Tenants, please e-mail your request to JeffGrandfield@TheLeaseCoach.com.
Jeff Grandfield and Dale Willerton - The Lease Coach are Commercial Lease Consultants who work exclusively for tenants. Jeff and Dale are professional speakers and co-authors of Negotiating Commercial Leases & Renewals FOR DUMMIES (Wiley, 2013). Got a leasing question? Need help with your new lease or renewal? Call 1-800-738-9202, e-mail DaleWillerton@TheLeaseCoach.com or JeffGrandfield@TheLeaseCoach.com or visit www.TheLeaseCoach.com.