In commercial real estate brokerage today you will frequently be negotiating with property owners, tenants, and business owners across a number of different strategies and property requirements. The best negotiation outcomes are achieved through skill development and will be a combination of a number of things including conversation, feedback, listening skills, and presentation.
Improve your negotiation and listening strategies
Over time you can improve your strategies with each element of commercial real estate negotiation, however you can fast track your negotiation skills through practice and personal development. Here are some ideas to help you with listening skills in any presentation, listing pitch, or negotiation:
- Choose the right place – wherever possible, choose the correct circumstances and the right place for the negotiation. Remove distractions from the process and the place. As a general rule, always negotiate directly one on one and in a face to face environment. Privacy is essential and confidentiality should be preserved. Get away from noisy situations, congestion, and other people. Choose the right place for the negotiation based on the parties and the property.
- Timing is important – whilst you may have a lot of things to say as part of the property negotiation, the timing of the process is very important given that you want other people to listen, interpret, and agree. If you believe the other person is under a degree of time pressure, then choose another time to extend the conversation into deeper issues and potential results. You want them to listen to you and absorb your recommendations in the right way. You want them to give you feedback as part of that process, and in moving towards a potential agreement.
- Look at the other person – as part of the property negotiation, presentation or discussion, ensure that you are completely committed visually to the other person, watching them as they talk and explain their position. Acknowledge what they’re saying, and restate any information that may require a further qualification or interpretation. You will also see elements of body language as they speak to help you fully interpret what they are saying.
- Control your emotions and feedback – don’t overreact emotionally as part of the property discussion and communication. Show your foremost respect of the other person and what they’re saying through controlled feedback and lower levels of emotion. You can be quite confident and involved in the property communication or negotiation, but you do not need to be emotional. Emotional involvement drives irrational comment. That can be a great danger in any property discussion and can be misinterpreted. Be patient and don’t interrupt when it comes to connecting with the other person.
Simple strategies like these can help you with client communications and property presentations. They can help you with lifting your conversions and negotiation results. Over time these factors can be practiced and improved.
On a final note, every commercial real estate negotiation should be documented with appropriate notes. Those notes can help you at a later time refer to the critical elements of the discussion and the outcomes.