Archives for March 2012

Commercial Property Negotiating: The Framework for a Great Deal (Part 3)

You need to keep asking Questions, right until the end.OVER THE past couple of weeks, you’ve quietly worked your way through the first 14 questions … as part of your prep-work for each Negotiation.

And today, you’ll be covering the final 6 key questions — to help ensure your success.

So, here’s what you also need to be asking: ARE YOU …

  1. Remaining Professional?

    You simply can’t afford to lose your temper … and still retain respect, from the other party.

    People can be insulting, and it is all too easy to respond aggressively. But sometimes they’re just doing that to test you, or your patience. So you may simply need to suggest adjourning the negotiations … to give them a chance to regain their composure.

    If it is a genuine outburst on their part, they can cool down. And if it’s merely a ploy … then, they’re going to look rather stupid.

  2. Aware of the Benefits & Consequences?

    You need to try and understand the benefits and consequences for each party in the Negotiation.

    Only then, can you properly decide when (and how) to make any concessions; also when (and how) to stand firm, with your own needs and requests.

  3. Employing the Power of Silence?

    Work on becoming comfortable with silence. Because, most negotiators feel the need to jump in with some comment, whenever there is an awkward pause in proceedings.

    But, whenever the answer to your question will actually commit the other party … say absolutely nothing more. Otherwise, all you’ll get is further conversation.

  4. Avoiding On-the-spot Decisions?

    Never commit on a major point, unless you are quite sure of your answer and you’re on solid ground.

    No matter what the pressure … all you need simply say is: “I may need to sleep on that, I’ll get back to you tomorrow”.

  5. Considering the Telephone?

    By choice, negotiations should commence face-to-face.

    However as things progress, you’ll sometimes find more progress can be made by phone — because it takes out all the emotion, and allows you to simply focus on the rational items, rather than any personal issues.

  6. Documenting the Final Agreement?

    Sadly, too many people leave the negotiating table with only a handshake. A short summary (by way of “heads of agreement”, a confirming letter or an email) is all you need to tie down the deal.

    You need to have some form of documentation at the end, if this is a serious negotiation.

    What you might say is: “Let’s make a few notes on the points we have agreed; for each of our files and just initial it.”

    Without a written agreement, you'll always have arguements.This is vital. Because, it provides a basis for the contract to be prepared. And when the contract arrives, you can confidently say: “That’s not what was agreed.”

    If you both have the same set of notes, it’s easy to verify that the contract has been drawn incorrectly.

    Otherwise, you’ll quickly discover how recollections can often change — between reaching agreement and the formal contract emerging. As a result, you are forced to restart the negotiation again.

Bottom Line: Hopefully, this has helped you to gain a complete “helicopter view” of how each component of a Negotiation ties in with all the others.

And with the framework at your fingertips, you are now better equipped to tackle your next negotiation.

 

Commercial Property and The Current Economy

These are Better Indicators of our Economic Well-beingLAST WEEK, we explored just how the misuse of statistics by some commentators was distorting of the truth about Australia’s economic well-being, on a state-by-state basis.

So it is with several other indicators, as David Bassanese pointed out in a recent article (AFR: 22 March, page 36).

Many commentators are pushing for interest rates reductions, because the “economy is soft”. And they list … [Read more…]

Commercial Property Negotiating: The Framework for a Great Deal (Part 2)

More questions you need to ask along the wayLAST WEEK, we made a good start by scoping the first 8 questions you need to keep asking yourself … as part of your prep work for each Negotiation.

So let’s pick up from where we left off — here your next 6 questions. And you’ll recall that before (and during) your negotiations, you need to be asking: ARE YOU … [Read more…]

Is The Mining Boom Masking a Major Problem for Commercial Property in Queensland and WA?

Queensland & WA will have the greatest amount of Distressed PropertyTHIS RATHER pressing issue appears to be receiving little or no coverage at all.

But if you listen to the insolvency firms, Western Australia is about to become the “hot spot” for distressed property.

And as you can see from the chart, Queensland well and truly holds the the crown at the moment. [Read more…]

Commercial Property Negotiating: The Framework for a Great Deal

Asking these Key Questions will help you succeed as a Negotiator.EVERY NEGOTIATION can be very easily broken down into its component parts … once you understand what is really going on.

Over the next few weeks, I’ll be posing 20 questions — which (when taken together) are intended to help you fully grasp everything involved. [Read more…]

Commercial Property: The Suburban Office Market

The Suburban Office market is currently your best choiceRIGHT NOW, the Sydney suburban market is trending sideways. And that’s rather good news, because the general consensus was it was about to slump.

While its vacancy rate sits at 9.6%, there is little new space coming onto the market over the next couple of years. [Read more…]

Commercial Property: When Time Comes to Sell (Part 2)

stealth

Last week, you explored the various Selling methods available to you — which ones were the preferred, and why.

Plus, you were also given some initial insight into the benefits of using Web (or “Stealth”) Marketing techniques. But how does this differ from traditional marketing for Commercial property?

Traditional Marketing tends to adopt a “scatter gun” approach — which depends heavily upon expensive media advertising and a detailed Information Memorandum.

Whereas, Stealth Marketing is more like using a “laser gun” … focusing on your target market — using a personalised direct-email campaign; PLUS a dedicated website, to explain everything about the Property.

If you’d like, you can find out even more about Stealth Marketing. Meanwhile, you’re probably wondering …

What else should you Expect from your Selling Agent?

  1. Your agent should be able to explain the current state of the market to you in detail. As well as providing a firm estimate of the likely price for your property.
  2. But you’re entitled to expect a whole lot more. And so, by way of a quick checklist … a good selling Agent should also:
  3. Gather and collate all necessary information to ensure purchasers will be fully informed, and capable of making a decision to buy;
  4. Liaise with you and your lawyers, to make sure the documentation is fully complete and correct;
  5. Create a dedicated website (or at least several webpages) for your property — making everything available to prospective buyers, in exchange for their contact details.
  6. Co-ordinate the overall marketing campaign: Mailing out brochures and letters (or preferably, sending out personally-addressed emails, with direct links for the website) to those potential purchasers known to be currently active in the market;
  7. Try to secure editorial coverage within the various media being used;
  8. Qualify and record all the enquiries that are generated throughout the marketing campaign;
  9. Arrange for the various inspections to take place;
  10. Prepare prospective buyers for the actual Auction, or Tender;
  11. Keep you advised as to progress, on at least a weekly basis;
  12. Ensure all preparations are made, so that everything runs smoothly on the day of the Auction, or the close of Tenders;
  13. Conduct the Auction (or open the Tenders with you); and attend to signing of the contracts with the successful purchasers;
  14. Depending upon local requirements, ensure an early release of the deposit;
  15. Follow up with your lawyers to ensure that the documents have been executed to their satisfaction; and
  16. Once the deposit has been released … account to you with the deposit monies, 30 days after the sale — setting everything out in a detailed statement for the sale.

Bottom Line: Unless your selling Agent is proposing to undertake these vital 16 steps on your behalf … then you should be looking elsewhere.

 

Commercial Property Snapshot: Retail Within The Melbourne CBD

LAST TUESDAY, you gained some insights into the changing Retail scene, for Commercial property around Australia.

According to some recent research by JLL & CBRE (BusinessDay: 29 Feb 2012), these trends are clearly starting to emerge within the Melbourne CBD.

The current vacancy rate is hovering at around 1%. And in part, this is due to the Growing number of people living and working within central Melbourne.

However, part of the reason behind this also lies in the recent entry into the market of several major overseas retailers. [Read more…]

Commercial Property: When the Time Comes to Sell … (Part 1)

WHAT YOU need is a strategy to make absolutely sure you obtain the best possible price when you sell.

You need to put your Buyers under CompetitionAnd you do this by creatively targeting investors, developers and potential owner-occupiers — through adopting a broad (yet cost-effective) marketing campaign, which draws out those buyers best suited to your property.

Choosing The Best Method of Sale

The #1 secret for successfully selling any property is to promote the feeling among your prospective buyers that “they could miss out”.

However, this is difficult to achieve with a straight, Private Sale. In fact, this method generally takes far longer to achieve a result — as it fails to create any sense of urgency in a buyer’s mind. [Read more…]