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Customize your Negotiation Simulation

The following questions concern the structure of the negotiation simulation. Any issues not specified to be compatible or log-rolling issues will be distributive issues.

How many issues should the negotiation include?
How many of those issues should be logrolling issues?
How many of those issues should be compatible issues?
What sort of BATNA do you want the negotiator in the tenant role to have?
What sort of BATNA do you want the negotiator in the landlord role to have?

The following questions concern the format of the negotiation simulation.

If the negotiation is multi-issue, do you want the issues to be 'scored' or 'unscored'?
Do you want extensive or abbreviated information about each issue and associated position?

The final customization question asks about 'reseeding' the random number generator. Reseeding the random number generator will create an entirely new simulation. If you keep the seed, you can tweak specific options (e.g., just change the BATNAs) while keeping the rest of the simulation the same.

Do you want to reseed the random number generator?

Personalize your negotiation simulation.

Use the fields below to personalize the simulation.

What is your name? (the case will say 'customized by ...')
What client/group are you customizing the case for? (the case will say 'customized for ...')
What is a state, city, or town relevant to the client/group of students you are teaching?
What is the typical monthly rent for an office in this town?

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 have been looking to move your business out of your home and into a private office. Corporate Court, a 40-unit office complex in Jacksonville looks like it has everything you need. The office you toured is not too far from your house and has the privacy your clients demand. You are meeting today with the developer and landlord of Corporate Court to negotiate the terms of a lease.

You have identified four issues that you want to discuss during the negotiation: guaranteed parking allocation, monthly rent, start date, and utilities 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 landlord fail to reach an agreement, you will lease an office with Beta Buildings, a nearby office park. Beta Buildings has offered you a deal worth 2,700 points.

Guaranteed Parking Allocation

A guaranteed parking space cannot be used by anybody except the tenant and their guests. Having more parking spaces will make it easier for your clients to park when they visit your office.

Guaranteed Parking Allocation OptionsPoints
A.No spaces 500
B.One space 800
C.Two spaces 1,100
D.Three spaces 1,400
E.Four spaces 1,700

Monthly Rent

Based on your research, a reasonable monthly rent for Jacksonville is approximately $1,557 per month.

Monthly Rent OptionsPoints
A.$1,384 per month 850
B.$1,557 per month 700
C.$1,730 per month 550
D.$1,903 per month 400
E.$2,076 per month 250

Start Date

The start date of the lease refers to the day that a new tenant begins paying rent. You do not want to start the lease soon because you are currently too busy to schedule a move.

Start Date OptionsPoints
A.Next week 650
B.Next month 825
C.Two months from now 1,000
D.Three months from now 1,175
E.Four months from now 1,350

Utilities Policy

The landlord may pay for some of the utilities listed on the lease. You would like the landlord to pay the utilities.

Utilities Policy OptionsPoints
A.No utilities included 300
B.Water included 675
C.Water and electricity included 1,050
D.Garbage service, water, and electricity included 1,425
E.Internet, garbage service, water, and electricity included 1,800

Office Rental Negotiation

Landlord

You are the developer, owner, and landlord of Corporate Court, a 40-unit office complex in Jacksonville. One of your long term tenants recently decided to retire and give up the lease a ground-floor corner unit with a lot of privacy. You are meeting today with the owner of Executive MatchMaker, a boutique consulting firm, about the terms of a potential lease.

You have identified four issues that you want to discuss during the negotiation: guaranteed parking allocation, monthly rent, start date, and utilities 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 2,700 points.

Guaranteed Parking Allocation

A guaranteed parking space cannot be used by anybody except the tenant and their guests. Having fewer guaranteed spaces makes more spaces available for other tenants.

Guaranteed Parking Allocation OptionsPoints
A.No spaces 1,700
B.One space 1,400
C.Two spaces 1,100
D.Three spaces 800
E.Four spaces 500

Monthly Rent

Based on your research, a reasonable monthly rent for Jacksonville is approximately $1,903 per month.

Monthly Rent OptionsPoints
A.$1,384 per month -200
B.$1,557 per month 175
C.$1,730 per month 550
D.$1,903 per month 925
E.$2,076 per month 1,300

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.

Start Date OptionsPoints
A.Next week 650
B.Next month 825
C.Two months from now 1,000
D.Three months from now 1,175
E.Four months from now 1,350

Utilities Policy

The landlord may pay for some of the utilities listed on the lease. You would like to not pay for the utilities.

Utilities Policy OptionsPoints
A.No utilities included 1,350
B.Water included 1,200
C.Water and electricity included 1,050
D.Garbage service, water, and electricity included 900
E.Internet, garbage service, water, and electricity included 750

Office Rental Negotiation

Teacher Materials

Your customized Office Rental Negotiation is a 4-issue negotiation simulation with short issue descriptions.

You chose to use a 'scored' version of this negotiation simulation. In a scorable negotiation simulation, all of the issues and interests have a list of options and associated point values.

There are two advantages associated with using a scorable simulation. First, scorable simulations facilitate comparisons. Participants can compare their outcomes and, by doing so, may be more curious about how one classmate reached such a good (or bad) deal. Second, scorable simulations help instructors illustrate the difference between distributive issues—where the parties have equal, but opposite, preferences—and log-rolling issues—where the opposing preferences are not equal to one another. Scorable simulations make it easier to learn how to create and claim value by bundling issues together.

Issues

Negotiation simulations vary in the extent to which negotiators can create and claim value using log-rolling, compatible, and distributive issues.

Log-rolling Issues

Log-rolling issues are issues where the two parties want different outcomes, but one party places more value in the outcome than the other. The way to successfully negotiate log-rolling issues is to 'bundle' issues that one party values highly with issues that the other party values highly. This bundling process allows people to simultaneously create value with and claim value from their counterpart.

Compatible Issues

Compatible issues are issues where both parties want the same outcome. The only way to be successful is to create value with your counterpart.

Distributive Issues

Distributive issues are issues where the two parties interests are directly opposed. The only way to successfully negotiate a distributive issue is by taking value from your counterpart.

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 both parties relatively weak BATNAs will create a positive zone of possible agreement, a situation that will reveal the power of first offers.

License

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.

Save and use the following URL if you'd like to generate this simulation again in the future:

https://customnegotiations.org/office-rental.php?i=3&il=1&ic=1&b1=2&b2=2&%20s=1&a=1&r=1476218081&cb=&cf=&w=Jacksonville&m=1730&v=0

Teacher Materials Scoring Summary

The P1 column lists the Tenant's points.
The P2 column lists the Landlord's points.
The ★s indicate the option that maximizes value creation (not applicable to distributive issues).'

Guaranteed Parking Allocation
A distributive issue with no value creation opportunity.
   
OptionsP1P2 
A.No spaces 5001,700  
B.One space 8001,400  
C.Two spaces 1,1001,100  
D.Three spaces 1,400800  
E.Four spaces 1,700500  
Monthly Rent
A log-rolling issue that the landlord (P2) values more.
   
OptionsP1P2 
A.$1,384 per month 850-200  
B.$1,557 per month 700175  
C.$1,730 per month 550550  
D.$1,903 per month 400925  
E.$2,076 per month 2501,300
Start Date
A compatible issue where both parties want the same thing.
   
OptionsP1P2 
A.Next week 650650  
B.Next month 825825  
C.Two months from now 1,0001,000  
D.Three months from now 1,1751,175  
E.Four months from now 1,3501,350
Utilities Policy
A log-rolling issue that the tenant (P1) values more.
   
OptionsP1P2 
A.No utilities included 3001,350  
B.Water included 6751,200  
C.Water and electricity included 1,0501,050  
D.Garbage service, water, and electricity included 1,425900  
E.Internet, garbage service, water, and electricity included 1,800750