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January 2016 Vol. 7 Issue 7
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Dear Friends,
Whether you are on the buying or selling side of real estate, there are some elementary actions you can take to vastly affect the outcome of negotiations. In this month's article, I discuss how to prepare for negotiation, and why it is essential. As I mention in the article, entire books have been written on the subject of negotiation. But there are some key beginning steps to take, whether you are selling a multi-million dollar portfolio or negotiating with your teenager. Take a look. It's a good place to start with any negotiation, and like it or not, all of us are negotiating constantly.
One of our very best clients is Nationwide Displays, now based in Central Islip in a recently-acquired 40,000 square foot building. It has been my pleasure to represent this company for their real estate interests for more than a dozen years, and in that time I have gotten to know the family and their operation extremely well. If you do any sort of convention or trade show business, I HIGHLY recommend their services. It is personalized, and very comprehensive. They can design, build, ship, set-up, and store your booth or display. Ask for Steve Griffith and tell him that David sent you!
"Oh the possibilities!"
David G. Hunt
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Preparing for Negotiation
by David G. Hunt
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Q: Once we have found the building we want to purchase, what is the best way to start negotiations?
A: Entire books have been written about the art of negotiating, so I can share only a few of the strategies that have helped me negotiate advantageous transactions for our clients. Fundamental to any successful negotiation is thorough preparation - this is the work that needs to be done before a single offer is made.
First, any negotiation has to be kept in the context of your needs. Let's suppose we have two alternatives for warehouse space. We know we will save at least $1.50 a square foot in real estate taxes with one of them, but that alternative will increase our shipping costs significantly. Which is the better deal? Don't run roughshod over your needs in your zeal to make a real estate deal! In other words, a bargain is not a bargain if you cannot use it.
This is the work that
needs to be done
before a single offer is made.
So research is elemental. I like to gather as many facts as I can about an impending negotiation such as building particulars, cost of repair or renovation, zoning, taxes, tax assessment, and ownership history. I question how the ownership of this property will impact my client. What kind of savings can be achieved, or costs mitigated? And what is going on in the marketplace? Where are similar deals being made? I like to find out, if possible, what offers have already been rejected, and why. It is also important to be considering, and negotiating on more than one site. This is known as a "Best Alternative to a Negotiated Agreement" (BATNA) in negotiating parlance. If the property under consideration is our only alternative, we are at a disadvantage in negotiating terms with the seller. If, on the other hand, we have several alternative sites, we can negotiate all the deals simultaneously. When we are ready to make offers, the key to this strategy is to make sure that each seller is aware that we are making offers on alternative sites.
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Property Highlight
1 School Street
Glen Cove, NY
5,360 Square Foot Condominium
FOR SALE OR LEASE
YOU CAN OWN FOR a LOWER COST THAN LEASING
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Companies on the Move
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Central Nassau Guidance is leasing at 55 West Ames, Plainview... Security Management is moving to 18 Industrial Park Drive, Port Washington... Yardi Systems is leasing at 400 Broadhollow Road, Melville... All Pro Horticulture is moving to 89 East Gates Avenue, Lindenhurst... Aircraft Lighting is moving to 195 Engineer Road,Hauppauge... Comme Ci-Comme Ca Apparel is moving to 380 Rabro Drive, Hauppauge... SUNation is moving to 171 Remington Boulevard, Ronkonkoma... rSquared is moving to 1186 Rout 109, Lindenhurst...
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Financing File
| Current Market Rates and Programs for the Long Island Commercial Marketplace
The SBA 504 loan program offers long term (10 or 20 years) fixed rate subordinate mortgage financing for the purchase and renovations of existing buildings or new buildings and equipment. Loans are up to 40% of the project cost..... (MORE) |
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Our Corporate Headquarters
17 Dupont Street, Suite 4
Plainview, NY 11803
516-937-1000
www.huntcorp.com
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COMPARABLE SALES IN THE LAST 12 MONTHS
| City | Address | Property Type | Size SF | Office SF | Acres Total | Sold Price/SF | Sold Date |
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| Ronkonkoma | 171 Remington Boulevard
| Industrial | 20,000 | 3,000 | 1.3 | $97.50 |
12/18/2015
| | Hauppauge | 380 Rabro Drive |
Industrial
| 20,000 | 10,000 | 1.41 | $125.00 | 12/11/2015 | | LIndenhurst |
165 New York Avenue
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Industrial
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10,500
| 1,050 |
.41
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$71.43
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12/8/2015
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Commack
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55 Mall Drive
| Office | 58,888 |
20,120
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4.63
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$137.55
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12/3/2015
| | Lindenhurst |
80 East Gates Avenue
| Industrial | 60,000 | 4,500
| 2.2 | $48.33 | 12/1/2015 | |
Garden City
| 1581 Franklin Avenue | Office | 15,000 |
| .23 | $166.67 |
12/1/2015
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For more Recent Sales, click here |
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©Copyright 2015, All Rights Reserved. The content of this web site may not be reproduced without the written permission of HUNT Corporate Services, Inc. All information is from sources deemed reliable and is subject to prior rental or sale, errors, omissions, change of price and withdrawal without notice.
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