Harvard death n. a death which occurs despite all symptoms being treated successfully or all medical test results appearing normal. Editorial Note: This term is often explained to mean “the operation was successful but the patient died.” (source: Double-Tongued Dictionary)
Most real estate leasing is borne of experience rather than preemptive learning. There are no university courses specifically dedicated to distilling the knowledge that is gained from the leasing experience.
Let me qualify that. There are courses that outline the financial analysis of a lease transaction, how space is measured and tenant retention, etc. But none have been found to date that explains how to maximize the outcome for the landlord or tenant, depending on the perspective.
The operation or mechanics of leasing can be perceived as successful, but the opportunity for value can die. The difference between a successfully completed lease transaction and a successful lease being completed is based on the experience and understanding of the process and the nuances of the transaction.
There are 5 required components to a successful negotiation. Those are:
- An Exchange of Value
To be successful, every lease negotiation must contain all five. However, because each component is interrelated to the others, the successful negotiator needs to master all five aspects and intuitively balance each during the leasing process.
In addition, the mutual understanding and final documentation must be precise, concise, and clear.
These aspects of real estate leasing are rarely taught or understood; partially because of the lack of formalized learning in this area. As a result, additional value is often missed.
If your organization would like to learn how to implement the five components in order to drive value, please contact me.