Commercial Property Negotiation
Negotiation is where the return on an acquisition is either created or given away. It is also the part of the process most buyers approach without preparation, in a campaign designed and controlled by the vendor's agent.
Our position is simple: we set a written ceiling before the first offer, we build the case from evidence, and we do not move without new information. Discipline is the entire advantage.
Evidence, not opinion
Every offer is supported by comparable transaction evidence expressed the way the market prices the asset: net yield, rate per square metre of lettable area, rate per square metre of land, and where relevant rate per licensed place or per bay.
Comparables are adjusted for lease term, covenant, condition and location. A well-constructed evidence pack changes the conversation from negotiation to reconciliation, and it gives the vendor's agent something to take back to their client.
The written ceiling
Before any offer is made, we agree a maximum price in writing with the client, derived from the underwriting rather than from the campaign. It moves only if due diligence reveals something that improves the asset, never because a deadline is approaching.
Competitive tension is manufactured. Deadlines, second interested parties and expressions-of-interest closing dates exist to compress buyer decision-making. A ceiling set in advance is the only reliable defence.
Terms carry economic value
Price is one variable among many. On most transactions the terms deliver more economic value than the last increment of price, and they are frequently easier to obtain because they do not damage the vendor's reported sale figure.
- Extended due diligence and finance periods
- Rent guarantees on vacant or short-term tenancies
- Retention sums for outstanding capital works or compliance items
- Vendor responsibility for incentives and make-good owed to sitting tenants
- Apportionment of outgoings arrears and land tax
- Deposit structure, release conditions and settlement timing
- Vendor warranties on income, outgoings and compliance
Understanding the vendor's position
Effective negotiation requires knowing why the asset is being sold, how long it has been on market, whether earlier contracts have crashed and why, what the vendor's timing constraints are, and whether the price expectation originated with the vendor or with the agent.
Most of this is discoverable. Our position as a repeat buy-side counterparty in the Queensland market means agents deal with us knowing the offer is genuine, funded and capable of completing, which itself creates leverage.
Auctions, EOI campaigns and off-market negotiation
Each format demands a different approach. Auction requires due diligence completed and funded in advance, and absolute price discipline in the room. Expressions of interest reward a well-structured submission with clean terms and demonstrated capacity, and frequently a pre-emptive offer before the close.
Off-market negotiation is the most favourable environment: no competition, no artificial deadline, and time to structure the transaction properly. It is why we invest so heavily in direct sourcing.
Questions investors ask us.
- How much do you typically negotiate off the asking price?
- Asking prices are not a meaningful benchmark. The relevant measure is the price against independently assessed value and against the evidence, and the value frequently comes from terms and retentions rather than from headline price alone.
- Can you negotiate on a property I have already found?
- Yes. Negotiation-only engagements cover underwriting, due diligence oversight and negotiation through to unconditional.
- Do you bid at commercial auctions?
- Yes, with due diligence completed beforehand and a written ceiling agreed in advance.
Request an investment strategy session.
A written brief, an independent view on the asset or the mandate, and a clear position on whether the capital should be deployed at all.