In-person Negotiating (cont.)

In my last post, I discussed the value of in-person communications in office lease negotiations. It’s also worth mentioning that the personal investment of time helps to define the level of commitment the various parties has to the business transaction. Through my 25 years of leasing Indianapolis office space and warehouse space, most of which as been operating Carmen Commercial Real Estate Services, I couldn’t think of a more appropriate application of this theory as commercial real estate transactions and specifically, office lease transactions. In the lease transaction process, meetings create a sense of collective accountability to reach compromises and clear hurdles. Lease transactions involve a series of crucial negotiations that are all related and underscored by the importance of long-term financial obligations by both parties.

Other benefits of personal meetings to finalize space negotiations involve the creation of documentation about key lease points and the opportunity to further involve third parties to the transaction, such as brokers, architects and attorneys. Each party should also strategize their respective role to ensure that goals are met and the proper bridges get crossed, which is a role perfectly suited to the cross-industry expertise of your tenant representative.

Whether dealing with engineers over electrical capacity issues or addressing a disagreement about pass-through expenses with your landlord, tenant representatives can effectively assemble and oversee effective team meetings that will knock down hurdles and move the transaction forward in a more effective matter than would be possible through a train of e-mail, lost attachments and poorly worded text messages.