Shafiq Hirani CCIMReal Estate Advisor, REMAX Distinctive · Real Estate Advisor at RE/MAX Distinctive Commercial | Washington, DC | Your Guide To Profitable Real Estate Ventures

Negotiating Real Estate Deals: Avoid Falling Apart #shorts

17 Sept 2026 · 1 min

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In this short, Shafiq Hirani CCIM explains a common pitfall in commercial real estate negotiations: owners price a building using their own operating statement, while buyers rely on a reconstructed (rebuilt) statement. The discrepancy between the two NOI figures often emerges during due diligence, when the buyer’s analyst presents a lower rebuilt NOI and demands a price reduction. Because the buyer’s version is already documented, the seller ends up negotiating from a weaker position, making deals vulnerable to falling apart.

Chapters

Now he wants a price reduction. And you are negotiating from behind, because his version has already been written and yours has not. Most owners price their building off their own operating statement. Buyers price off a reconstructed one. Those are 2 different documents describing the same building, and the gap between them is where deals fall apart. Here is how it usually goes. You agree on a price based on your numbers. 3 weeks into due diligence, the buyer's analyst comes back with a rebuilt statement and a lower NOI. Now he wants a price reduction. And you are negotiating from behind, because his version has already been written and yours has not.