I wish I could tell you I have all the answers but I do not. (Alert the media!) Grave concerns perceived by my clients show up during lease and purchase negotiations that I cannot resolve with persuasion or market knowledge. Do you have kids? Ever notice how your child will take an outsiders advice more seriously than yours? OK, now we’re on the same page.
When negotiations get into crunch mode and the deal is on the line, the tenant may begin to wonder whether their broker’s advice is offered in their best interests or in the interest of closing a deal and collecting a commission. That is when I often call in outside experts that can provide facts and perspective that will lead to a wise decision by the tenant that really does support their objectives. These outside resources include attorneys, accountants, bankers, architects, contractors, and entitlement consultants. And as a tenant advocate, I have a large stable of them.
In one recent deal, my client was negotiating to purchase a property for development in a , shall we say, “controversial” submarket from a seller who had been pursuing entitlements to do his own development. My client maintained what I thought was an overly pessimistic opinion of whether and when the entitlements could be secured. The parties were at an impasse and talks stalled. I knew that arguing my case would only have been self-serving. So I got permission from the seller to have his entitlement consultant meet with my client. The informed intelligence of this consultant answered my client’s questions, put his mind at ease, and got the negotiations moving forward again.
A good tenant broker will search for clarity…and go to the ends of the Earth to find it.