Why NegotiationWhy NegotiationSkills in CommercialSkills in Commercial

PropertyPropertyManagement ReallyManagement Really

Do MatterDo Matter

by John Highman - International Commercial Coachby John Highman - International Commercial Coach

Why Negotiation Skills inWhy Negotiation Skills inCommercial Property ManagementCommercial Property Management

Really Do MatterReally Do Matter

In commercial and retail property management there are plenty ofsituations that require good property negotiation skills andcommunications. Property managers must have plenty of businessacumen and knowledge to handle all the lease events and occupancyissues coming their way. The larger the property, the deeper and morecomplex the issues over time.

Diplomacy and AccuracyDiplomacy and AccuracySo, what does a property manager need to be good at with theirnegotiations? What do they need to look for? Here are some of the mainones to start with:

Why Negotiation Skills in Commercial Property Management Really Do Matter –Commercial Real Estate Online

Why Negotiation Skills inWhy Negotiation Skills inCommercial Property ManagementCommercial Property Management

Really Do MatterReally Do Matter

1. Tenant contactTenant contact – there is a real requirement to stay in contact withtenants across a property and or a portfolio of properties. That can bea di cult task as the numbers of managed buildings rise, or thecomplexity of those buildings lift. The greater the number of tenants ina building, the busier the property manager.

2. Property documentationProperty documentation – leases, licenses, and associated legalforms will underpin a tenant’s occupancy and or rental payments.They will also impact the landlord’s investment outcomes. Leasecompliance is a big thing in property performance today, and theproperty manager is the person to control those things. Every leaseand tenant situation must be reviewed for accuracy, compliance, andtimeliness. It is helpful to undertake a full lease assessment on aquarterly basis to pick up any compliance and critical dates coming upin the next 12 months.

3. Lease complianceLease compliance – these are the factors of occupancy that mustoccur due to a date, an event, or an occupancy issue. Tenants andlandlords both must comply with lease terms and conditions. Theproperty manager is the right person to watch and implement theevents for both parties. The word ‘timeliness’ is important when itcomes to lease matters. Look forward in the upcoming dates of alease for the next 12 to 18 months; in that way, you can act early onimportant things relating to occupancy.

Why Negotiation Skills in Commercial Property Management Really Do Matter –Commercial Real Estate Online

Why Negotiation Skills inWhy Negotiation Skills inCommercial Property ManagementCommercial Property Management

Really Do MatterReally Do Matter

4. Vacancy marketing and negotiationVacancy marketing and negotiation – there will be vacancies in amanaged property. Watch for situations of vacancy existing andcoming up. There are ways to market a vacancy into the localbusiness community; the personal approach is the best way to do thatby talking to local people and seeking information about what they aredoing now with their business and how they see any changes comingup.

5. Maintenance contractors and contracts relate to the propertyMaintenance contractors and contracts relate to the property –costs can be saved with some maintenance contracts, although theworks to be done should be completed correctly and in a timely way.There are plenty of instances where a ‘cost-cutting’ process onproperty maintenance will have produced unacceptable risk andpresentation outcomes.

Why Negotiation Skills in Commercial Property Management Really Do Matter –Commercial Real Estate Online

Why Negotiation Skills inWhy Negotiation Skills inCommercial Property ManagementCommercial Property Management

Really Do MatterReally Do Matter

6. Income and rental negotiationsIncome and rental negotiations – property rents can be made up ofdi erent elements such as occupancy, maintenance recovery, thebase rental, turnover rents, outgoings recovery, and license fees forspecial areas. Every rent and income stream should be optimizedwithin reason and with due regard to property market conditions.Know the local market rents, and how your leased or managedproperty situation compares. Optimize rentals but don’t create asituation of unrealistic occupancy conditions where a tenant mayleave the property when costs are high.

7. Landlord contact and reportingLandlord contact and reporting – approvals are part of aprofessional property management service. Some landlords takeconvincing when it comes to spending money or accepting a newlease or a new tenant. You can add to that list the maintenance costsand expenses in a property. All elements require reporting,recommendations, and negotiation. A solid awareness of the fullsituations or tasks at hand will help a property manager achieve apositive outcome with the landlord client.

8. BudgetsBudgets – a property budget will involve discussions about costassociated items such as rental, expenditure, capital works, andproperty operating maintenance. All the elements of a propertyfunction will be in the budget, and negotiations will happen to keepsome parity with expected financial outcomes.

9. CustomersCustomers – there are plenty of customers coming to or movingthrough a property over a working day and business day. A shoppingcentre is a case in point. Some customers need control and orcommunication. Risks, damage, lost property are all. Factors ofnegotiation that involve customers. Systems are needed to work withthe customer related communications.

Why Negotiation Skills in Commercial Property Management Really Do Matter –Commercial Real Estate Online