The following is a recent blog from Parallel Directions.

The commercial rental property market in New Zealand continues to be very much a tenant’s market… but there are many landlords who simply don’t get it.

Negotiating myopia
It amazes me in the many negotiations I conduct for clients how many landlords take such a short-term view and, by playing hard ball, lose out on securing long-term tenants.

In today’s over-supplied market it is more important than ever, one would think, for a landlord to build a good and long-term relationship with tenants. But alas, many still don’t get it.

In my experience, the good majority of commercial property landlords in New Zealand have very poor negotiating skills. They are often inflexible and take a narrow view regarding their income and profitability.

Here is some free advice:

• Do not bow to the assumed power and might of the landlord.
• Consider the range of possibilities in negotiation.
• Offer alternatives that can secure a deal that suits the tenant.
• Make sure those alternatives also meet the needs of the landlord.

75% of these landlords didn’t get it…
Of the four most recent commercial property negotiations I’ve been involved in recently, only one landlord was flexible, prepared to build a relationship with their tenant, and look to the long term.

Prediction:
I predict that come the next rent review, this relationship will last and a rent renewal to benefit both tenant and landlord will be achieved. In the other three cases where the landlord has been inflexible, the tenants will leave to find a better deal.

I believe it is the way of the future that win-win solutions in business will result from thinking about the needs of the other party.

Advantage
The advantage I have negotiating strategies on behalf of tenants is that I can take a totally independent view and offer up win-win proposals that not only benefit my commercial tenant clients, but educate landlords about potential alternative deals and how to win secure long-term tenancies.

I’m lucky that I am not responsible to any corporate entity that demands I negotiate in a narrowly focussed manner. That enables me and my clients to make the best of today’s buyer’s market… and potentially up-skill a few landlords in negotiating mutually beneficial deals at the same time!

What about you?
Have you had success negotiating a lease with a reasonable landlord or has your landlord been inflexible and hard nosed? How has this influenced your attitude towards your landlord and your intentions to stay or go? Leave a comment below and share your experiences with other readers…