This Is Why You Don’t Settle for the First Offer

In commercial real estate, you negotiate on a non binding basis in a letter of intent or an RFP request or proposal. And it's common in commercial real estate to be negotiated with four or five landlords or sellers simultaneously. And the reason being is you don't have any idea if one landlord is much more motivated than another landlord. You might have two properties that are side by side that look identical. Well, one landlord might have bought it 20 years ago and have no mortgage. The other guy is leveraged to the hilt and he can't do the same deal. One landlord might be getting ready to sell their property and they want the highest lease rate, but they're willing to give significant concessions for it. The other guy is going to hold it for the next 20 years and he's willing to do a much more competitive deal because he wants occupancy over lease rate. And so you don't know those things until you negotiate multiple people.