• June 13, 2018

The Red Hot Chili Peppers, Gorillaz, Madonna and Public Enemy Bring The Noise-We Got The Power Theory

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The Red Hot Chili Peppers, Gorillaz, Madonna and Public Enemy Bring The Noise-We Got The Power Theory

The Red Hot Chili Peppers, Gorillaz, Madonna and Public Enemy Bring The Noise-We Got The Power Theory 800 450 Leasing REality | Commercial Real Estate Education

Negotiating Theories to Succeed in Life, Marketing and Commercial Leasing (Part 9)

Without trying to get too deep on you my leasing brethren, leverage has generally been defined as the power to influence a person or situation to achieve a particular outcome. Stating what may or may not be the obvious, context in negotiations is quite powerful. In any world, leverage (along with knowledge) is power, and as the title of the Red Hot Chili Peppers’ song goes, leverage brings The Power of Equality to those possessing it!

In a landlord’s market, when advocating on their behalf, real estate professionals should feel empowered, but with some semblance of tact and reasonableness, when putting forth the message – with a little help from the (semi) virtual band Gorillaz – that We Got the Power.”

Conversely in a tenant’s market – such as the retail market which was prevalent during the summer of 2017 across the United States – tenant advocates can and should know – in the words of Grammy Award winning band Linkin Park – that they are not Powerless in their negotiations. Taking it a step further, some tenants feel as if they possess a very powerful negotiating chip when negotiating with their present or prospective landlord  … such as (with kudos out to none other than Madonna) “The Power of Good-Bye.”

Once again stressing the importance of (1) context and (2) knowledge in general and as well as that of existing market conditions, when it comes to how a real estate pro should approach his or her letter of intent and lease negotiations, a good number of the song titles of hip-hop and Rock and Roll Hall of Fame legends Public Enemy should be taken to heart and mind when doing so. As a tenant advocate, you need to walk a very tight and fine line when you Bring the Noise to your letter of intent negotiations. The “noise” I am talking about is the pro-tenant concession cocktail you plan on serving to the landlord; the “tight and fine line” is that of convincingly conveying the following messages simultaneously that:

  1. you’re not trying to Fight the Power;
  2. for the greater good of getting a deal done, we as Brothers Gonna Work it Out; and
  3. when you are asking the landlord to “Give It Up,” as a tenant advocate you clearly put forth the message of don’t worry You’re Gonna Get Yours.”

If at the end of the day you are successful in doing so,  you’ll leave the landlord’s side no choice but to say He Got Game.”

Going to the well once more with Public Enemy as my wing men, that if you fail in properly advocating your client’s position, not only will the landlord send a message to the tenant that they Can’t Do Nuttin’ For Ya’ Man,” but even worse, the landlord may very well move on to another prospective tenant, by instructing their agent to cease negotiations and to Shut ‘Em Down.”