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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 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: 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 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 3,225 points.
A landlord-provided cleaning service can keep everything looking great and well maintained. Although you like a clean office, your privacy minded clients would prefer that you receive as few landlord-provided cleanings as possible.
| 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 smaller security deposit.
| Security Deposit Options | Points | |
|---|---|---|
| A. | Zero dollars | 1,300 |
| B. | Two weeks rent | 1,125 |
| C. | One month's rent | 950 |
| D. | Six weeks rent | 775 |
| E. | Two months rent | 600 |
The sublet policy describes the circumstances under which the tenant can sublet the office to someone else in their absence. You would like a lenient sublet policy.
| Sublet Policy Options | Points | |
|---|---|---|
| A. | No sublets allowed | 50 |
| B. | Sublets allowed with two months notice | 450 |
| C. | Sublets allowed with one month's notice | 850 |
| D. | Sublets allowed with one week's notice | 1,250 |
| E. | Sublets allowed with no advance notice | 1,650 |
An office lease can be any length. You want to sign a long lease.
| Lease Length Options | Points | |
|---|---|---|
| A. | Month-to-month | 650 |
| B. | Three months | 975 |
| C. | Six months | 1,300 |
| D. | One year | 1,625 |
| E. | Two years | 1,950 |
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 |
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 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.
Negotiation simulations vary in the extent to which negotiators can create and claim value using log-rolling, compatible, and distributive 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 are issues where both parties want the same outcome. The only way to be successful is to create value with your counterpart.
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 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.
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&v=0
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).'
| Office Cleaning Policy A compatible issue where both parties want the same thing. | Options | P1 | P2 | |
| A. | No cleanings | 1,250 | 1,250 | ★ |
| B. | One deep clean per year | 1,175 | 1,175 | |
| C. | Quarterly cleanings | 1,100 | 1,100 | |
| D. | Monthly cleanings | 1,025 | 1,025 | |
| E. | Biweeky cleanings | 950 | 950 | |
| Security Deposit A log-rolling issue that the landlord (P2) values more. | Options | P1 | P2 | |
| A. | Zero dollars | 1,300 | 150 | |
| B. | Two weeks rent | 1,125 | 550 | |
| C. | One month's rent | 950 | 950 | |
| D. | Six weeks rent | 775 | 1,350 | |
| E. | Two months rent | 600 | 1,750 | ★ |
| Sublet Policy A log-rolling issue that the tenant (P1) values more. | Options | P1 | P2 | |
| A. | No sublets allowed | 50 | 1,200 | |
| B. | Sublets allowed with two months notice | 450 | 1,025 | |
| C. | Sublets allowed with one month's notice | 850 | 850 | |
| D. | Sublets allowed with one week's notice | 1,250 | 675 | |
| E. | Sublets allowed with no advance notice | 1,650 | 500 | ★ |
| Lease Length A distributive issue with no value creation opportunity. | Options | P1 | P2 | |
| A. | Month-to-month | 650 | 1,950 | |
| B. | Three months | 975 | 1,625 | |
| C. | Six months | 1,300 | 1,300 | |
| D. | One year | 1,625 | 975 | |
| E. | Two years | 1,950 | 650 | |