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Eisenkraft, Noah (2016). "Office Rental Negotiation", Custom Negotiations, https://customnegotiations.org/.
All content is © Noah Eisenkraft 2024, all rights reserved.
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.
Eisenkraft, Noah (2016). "Office Rental Negotiation", Custom Negotiations, https://customnegotiations.org/.
All content is © Noah Eisenkraft 2024, all rights reserved.
You are the developer, owner, and landlord of Corporate Court, a 40-unit office complex in San Francisco. 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.
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 $4,730 per month. Charging a higher rent gives you more money for business.
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 monthly rent of $3,870 per month.
Eisenkraft, Noah (2016). "Office Rental Negotiation", Custom Negotiations, https://customnegotiations.org/.
All content is © Noah Eisenkraft 2024, all rights reserved.
Your customized Office Rental Negotiation is a single-issue negotiation simulation with a long issue description.
Single issue negotiations are distributive bargaining situations where any value claimed by one party is value lost by the other party. A single issue negotiation simulation is a useful tool for teaching about Best Alternatives to a Negotiated Agreement (BATNA).
Best alternatives to a negotiate agreement (BATNAs) describe what each party will do if they are unable to reach a deal. BATNAs determine the reservation value of the parties, i.e., the value that a negotiated outcome must exceed before a party should rationally accept the deal.
Giving one party a stronger BATNA than the other will illustrate how power differences may affect the outcomes of negotiations.
Permission is hereby granted, free of charge, to copy and distribute this customized simulation in any medium or format for teaching or research purposes. You are prohibited from reselling the simulation or collecting any money from its distribution.
Please give appropriate credit when using this simulation. I ask that you cite both my paper on custom negotiations and the specific case. These citations are
Eisenkraft, Noah (2017). CustomNegotiations.org: A free resource for creating custom negotiation simulations. Negotiation Journal, 33, 239-253.
Eisenkraft, Noah (2016). "Office Rental Negotiation", Custom Negotiations, https://customnegotiations.org/
The simulation is provided "as is" without warranty of any kind, express or implied. In no event shall the authors or copyright holders be liable for any claim arising from or in connection with the use of this simulation.
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