Office Rental Negotiation

Tenant

You are the owner and sole employee of Executive MatchMaker, a boutique consulting firm that helps executives find new jobs. You started Executive MarchMaker last year after spending a decade working in corporate human resources. You love being your own boss! It's such a great feeling to help people find exciting new opportunities. Plus: you made more money in the last six months than you previously made in a year!

One of your big goals for this year is to move Executive MatchMaker out of your home and into a private office. While your clients seem okay with meeting in your home, a private office would make everything feel more professional. You have been looking for offices that do not have a long commute and will preserve your clients' privacy.

You recently toured an office at Corporate Court, a 40-unit office complex in San Francisco. The office's location is perfect. It's not too far from your house and has a lot of privacy. You are meeting today with the developer and landlord of Corporate Court to negotiate the terms of a lease.

The monthly rent is the only issue that matters in this negotiation. Based on your research, a reasonable monthly rent for San Francisco is approximately $3,870 per month. Paying a lower rent gives you more to run your business.

Should you and the landlord fail to reach an agreement, you will lease an office with Beta Buildings, a nearby office park. Beta Buildings has offered you a monthly rent of $4,257 per month.