Landlord Office Rental Negotiation You are the developer, owner, and landlord of Corporate Court, a 40-unit office complex in Chapel Hill. You originally built Corporate Court 15 years ago and have maintained an average monthly occupancy rate of 93%. You are proud to run such a successful business. .. One of your long term tenants recently decided to retire and give up their lease. The vacated office is a ground-floor corner unit in Building 3. It is easily accessible from the parking lot, but also far enough from foot traffic to ensure privacy. The retiring tenant used the office to see patients in her psychotherapy practice. It's a perfect office for a sole proprietorship or a small business. You are meeting today with the owner of Executive MatchMaker, a boutique consulting firm that helps executives find new jobs. The owner of Executive MatchMaker toured the vacant office recently and said that it meets all of their needs. You scheduled this meeting to negotiate the terms of a potential lease. You have identified four issues that you want to discuss during the negotiation: monthly rent, start date, sublet policy, and office cleaning policy. Your negotiation is not complete until you reach an agreement on all four of these issues. As part of your negotiation preparation, you created a points schedule that reflects your preferences. Your goal is to reach an agreement that provides you with as many points as possible. THE MORE POINTS YOU EARN, THE BETTER YOUR AGREEMENT. Should you and the prospective tenant fail to reach an agreement, you will lease the office to Dr. R. S. Townsend, a psychiatrist whom you met at the country club. Dr. Townsend has offered you a deal worth 4,350 points. Monthly Rent Based on your research, a reasonable monthly rent for Chapel Hill is approximately $2,200 per month. Charging a higher rent gives ou more money for business. Monthly Rent Options $1,600 per month $1,800 per month $2,000 per month $2,200 per month $2,400 per month Points 300 450 600 750 900 Start Date The start date of the lease refers to the day that a new tenant begins paying rent. Although your current tenant has already vacated the office, a later start date would give you more time to make repairs. Starting the lease too soon rush the repairs and increase long- term costs. Start Date Options Next week A. B. Next month C. Two months from now D. Three months from now E. Four months from now D. Sublets allowed with one week's notice E. Sublets allowed with no advance notice Points Sublet Policy Office leases often include a clause that describes the circumstances under which the tenant can sublet the office to someone else in their absence. You would like to reduce subletting. Subletting an office is a security problem for the other tenants in the building. Points Sublet Policy Options A. No sublets allowed B. Sublets allowed with two months notice C. Sublets allowed with one month's notice 850 1,025 1,200 1,375 1,550 A. No cleanings B. One deep clean per year C. Quarterly cleanings 1,800 1,400 1,000 600 200 Office Cleaning Policy Offices get dirty. A landlord-provided cleaning service can keep everything looking great and well maintained. You can keep costs down by paying for no cleanings. The tenant can clean the office themselves or hire their own cleaners. Office Cleaning Policy Options Points 1,100 825 550 D. Monthly cleanings E. Biweeky cleanings 275 0 PROJECT: NEGOTIATION PLAN INDEX 1.) Goals: What are your goals 2.) Objectives: Describe the steps to obtain your goals 3.) Which skills are you going to use during the negotiation 4.) Type of negotiation 5.) How do you skillfully for the negotiation 5.1 Do you do any search? 5.2 Do you do any bench market? 5.3 Do you know your priorities? 5.4 Do you do any search regarding the other party (counterpart?) 5.5 If you did any search and market research; did you find some cultural or language barrier. How would you overcome these barriers? 6.) To walk away. Are you contemplating walking away from the negotiation? Do you have any additional option if you work away? 7.) Timeline 8.) Re-evaluate and assess your progress. 9.) Do you consider negotiate agreement BATNA 10.) Four (4) Element for negotiation. Describe briefly and in a summarized way which of these elements will be used during the negotiation: Strategy, Process, Tools and Tactics. 11.) Where the Negotiation will be done: Person to Person, Video Camera, and Email or by phone. 12.) Method of negotiation and Tendency of the negotiation. 13.) Do you apply any lesson learned to the negotiation, some experience in the past? Describe if you apply. 14.) Did you apply for sources power negotiation? 15.) was your negotiation successful. Describe how successful it was. 16.) To sign the Contract and follow up. Conclusion.