Commercial Real Estate deals: methods for achieving lucrative agreements

In this article

1 How to approach negotiations in the Real Estate sector
2 Keys to identifying business opportunities in the office Real Estate sector
3 Negotiation strategies for achieving lucrative deals
4 Risk-free alternatives in office rentals

2024-02-29

To know how to negotiate is essential in life, but it should be a mandatory skill in the world of Real Estate. Is it your Achilles’ heel? Don’t worry because today we will share three effective negotiation strategies that will help you close deals and achieve beneficial results for your clients. Whether you have experience or not, these keys will improve your negotiation skills and enable you to achieve better results in your commercial real estate deals.

1 How to approach negotiations in the Real Estate sector
2 Keys to identifying business opportunities in the office Real Estate sector
3 Negotiation strategies for achieving lucrative deals
4 Risk-free alternatives in office rentals

How to approach negotiations in the Real Estate sector

Navigating negotiations in the real estate sector requires specific skills and a strategic approach. If you’re unsure where to start, here are some aspects to consider when initiating a commercial real estate deal:

1. Before initiating any negotiation, thoroughly research the property in question as well as the local real estate market.

2. Clearly define your objectives and limits before starting the negotiation. This includes the maximum price you’re willing to pay or the minimum price you’re willing to accept if you’re selling a property.

3. During negotiations, it’s important to maintain calmness and confidence in yourself. Don’t let emotions take control and strive to maintain a professional attitude at all times.

4. Actively listen to the other party to understand their needs and concerns.

5. Use concrete data and strong arguments to support your position during negotiations: information about the property’s condition, improvements made, income potential, etc.

6. Maintain flexibility and make concessions if necessary to reach an agreement.

Keys to identifying business opportunities in the office Real Estate sector

You already know that the real estate sector is very broad, but in something we are experts, it is in the flexible office sector. What are negotiations like for these real estate assets? Let’s focus on the main aspects you should consider:

1. Strategic location plays a crucial role in agreements. Keep in mind that demand will depend on accessibility, nearby commercial areas, whether it is located in a financial district, or if it is close to public transportation.

2. Market trends always vary. Until recently, the work model leaned more towards remote work. Today we see how the post-pandemic era has brought back the demand for office spaces, but with the nuance of flexibility.

3. Assess the quality of infrastructure and available services in the area, such as parking, security, high-speed internet connection, and other important business services. Also, consider if the building has an energy certification. If you want to learn more about this topic, don’t miss this energy-saving guide for companies.

4. As we said, flexibility and adaptability are changing and depend on each company. Consider whether the office has modular areas, shared common areas, or other spaces.

5. Evaluate the long-term growth potential of the area, considering urban development projects, business expansion, and other factors that may drive demand for office spaces in the future.

6. Conduct a thorough financial analysis to determine the feasibility and profitability of the project, considering factors such as acquisition cost, maintenance expenses, rental income, and expected return on investment.

7. Make sure to understand the local regulations and norms that may affect investment in commercial properties, such as zoning restrictions, building codes, and permit requirements.

8. Consider seeking advice from professionals in the field, such as real estate agents, real estate lawyers, and financial consultants, to gain expert insight and minimize risks.

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Negotiation strategies for achieving lucrative deals

We want your commercial real estate deals to be a complete success and for you to become a successful business person. Here are three strategies based on real success cases; let’s put them into practice!

Flexibility strategy

Context: A company is interested in renting a property for its commercial activity that is currently occupied but will be vacant in three months.

Opportunity: The flexibility strategy would consist of achieving a win-win deal for both parties. For example, the company could agree to wait for the three months to access the property. In exchange, the owner could offer the company a discount for the first few months of rent once it becomes available. Another option would be to offer them a temporary contract in another available space with a discount applied until they can move to the desired one.

Immediacy strategy

Context: A company is highly interested in renting an office space. For the office operator, it’s crucial to close the contract as soon as possible because each day the space remains vacant represents a potential loss of income.

Opportunity: The immediacy strategy involves leveraging the operator’s interest in having the company close the rental contract as soon as possible. This could entail offering a discount in the agreement, benefiting both parties. By expediting the contract closure process, vacancy is avoided, ensuring a steady flow of income for the operator, while the company quickly gains access to a suitable space for its operations, commencing operations without loss of time and at a competitive cost.

Value-Added strategy

Context: A technology services company is very interested in renting an entire floor in a prestigious building in the city center to convert it into the corporate headquarters for their team.

Opportunity: To obtain more favorable conditions in the contract, the technology company proposes to the owner to equip some of the common areas of the building with their home automation systems. In this way, the owner could apply a significant discount on the monthly payment in exchange for obtaining that added value and making the building stand out as a more attractive and distinctive option for potential future clients.

Risk-free alternatives in office rentals

As we’ve seen, the real estate market is volatile, but there are always alternatives that offer stability and security in office rentals. An increasingly popular option is renting flexible spaces, such as those offered by Lexington. What advantages do we offer?

Flexible contracts: Lexington provides flexible lease agreements that allow companies to easily adjust the size and duration of their office space according to their needs.
Included services and amenities: Clients will enjoy modern and ergonomic furniture, access to common areas, reception services, a good network connection, fully equipped meeting rooms, networking events, etc.
Reduction of financial risks: Tenants can avoid significant investments in office infrastructure and equipment, thus reducing the financial risks associated with owning and maintaining traditional workspace.
Brand image and talent attraction: For companies, working in flexible spaces can enhance their brand image and attract talent.

Work in a professional environment alongside top international companies in the technology and retail sectors. We hope this article has been of great help to you and that your next agreements are a complete success. If what you ultimately need is a flexible alternative that adapts to your needs, why wait to contact us? You just need to fill out this form ⬇️

3 strategies to achieve good agreements in the Real Estate world