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 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: office cleaning policy, security deposit, sublet policy, and lease length. 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 3,225 points.
A landlord-provided cleaning service can keep everything looking great and well maintained. You can keep costs down by paying for no cleanings.
| Office Cleaning Policy Options | Points | |
|---|---|---|
| A. | No cleanings | 1,250 |
| B. | One deep clean per year | 1,175 |
| C. | Quarterly cleanings | 1,100 |
| D. | Monthly cleanings | 1,025 |
| E. | Biweeky cleanings | 950 |
Landlords often require a security deposit when new tenants move in, in addition to the first and last month's rent. You want a larger security deposit.
| Security Deposit Options | Points | |
|---|---|---|
| A. | Zero dollars | 150 |
| B. | Two weeks rent | 550 |
| C. | One month's rent | 950 |
| D. | Six weeks rent | 1,350 |
| E. | Two months rent | 1,750 |
The sublet policy describes the circumstances under which the tenant can sublet the office to someone else in their absence. You would like to reduce subletting.
| Sublet Policy Options | Points | |
|---|---|---|
| A. | No sublets allowed | 1,200 |
| B. | Sublets allowed with two months notice | 1,025 |
| C. | Sublets allowed with one month's notice | 850 |
| D. | Sublets allowed with one week's notice | 675 |
| E. | Sublets allowed with no advance notice | 500 |
An office lease can be any length. You would like to sign a short lease.
| Lease Length Options | Points | |
|---|---|---|
| A. | Month-to-month | 1,950 |
| B. | Three months | 1,625 |
| C. | Six months | 1,300 |
| D. | One year | 975 |
| E. | Two years | 650 |