Posts tagged negotiations
By George Livingston and Christie Alexander
According to current economic indicators–and most economists–U.S. business and industry will likely show measurable signs of improvement in 2011. That means the window is narrowing on the opportunity for industrial firms to recognize significantly improved revenue from their leased facilities.
That may seem counter-intuitive at first. But the current economic cycle is rife with opportunity for successful enterprises with positive credit history. Your landlord is loath to admit it, but the fact is, your More >
As the economy strengthens and vacancies begin to decline, landlords and owners will begin to try to recover some of the rental rate ground they lost during the recession. The recovery does not appear to be swift, but landlords will need some relief going forward or they will not be able to maintain the properties to the prior standard. More >
What is cost plus? In the Corporate Solutions world the cost plus model is utilized when a real estate firm has dedicated resources either on-site or off-site for a client (the end user). These resources (Account Managers, Transaction Managers, Lease Administrators, Design/ Architects, Project Managers and GIS professionals) are paid for by the client, typically in monthly installments. Specifically their base salary, bonus, benefit load, technology, leadership management, SG&A and profit are rolled into the monthly fee paid to the vendor. More >
Creation of a portfolio strategy for an organization begins with determination of what assets are strategic to the organization. For instance, the research and development laboratories of a pharmaceutical firm may be considered strategic or the factories of a pulp and paper manufacturer. On the other hand, the sales offices, warehouses and distribution centers are probably not strategic to these industry participants. For a firm whose business is logistics, then perhaps the warehouse is strategic. The concept is a firm most likely wants to control the strategic assets through fee ownership and lease the non-strategic assets. One can blur the lines a little by lengthening a lease term so that a leased asset has long term stability as if it were an owned asset.
Ted Parcel is Executive Vice President of Corporate Services for NAI Global.
It occurs to me that in a stagnant market where transactions are off some 80%, the way one would approach negotiating a real estate deal might benefit from a little more finesse than the “take it or leave it” strategy employed by many just a few short years ago.
The fact is, we negotiate nearly everything throughout life. Whether it’s whose turn it is to do the dishes, how to divide up the spoils of a conquered nation or who gets the vintage James Taylor album after the divorce. More >