Talk is Cheap

Even though I am a tenant rep broker, roughly 10% – 25% of my clients request me to list or sublease space.  I am currently listing an space near downtown Houston and I connected with a prospect who was interested in getting a deal done.  During my initial conversation with the prospect I notice that he was very abrupt on the phone just wanted to “see the space”.  Several times he ask to see the space “today, like right now, like in 15 minutes!”

Respectfully, I asked if he would not mind telling me more about his business so that I could qualify him for my client.  He quickly told me the following, “Look buddy, in this market I can get whatever I want.  My company has millions of dollars and I don’t have time to talk, there are lots of spaces out here so if your client knows what is good for him he will give me what I want.”

When I sub-lease or lease spaces, my clients expect the same expertise to represent them.  A good broker knows what the local market will bear.  They are confident in where the market is because they live it every day.  Many of us have been burned by “forcing a deal” or making a deal work that maybe should have been passed up.  Make no mistake about it, the market is softer now than it was 2 years ago in retail and office in the Houston market,  but stating that fact in the hopes of getting a better deal is not as effective as experience combined with sound market knowledge.  Negotiations works best when brokers and tenants come together based on reliable local market information.  When the conversation is based on hard numbers there is usually a much more productive conversation.  When negotiations begin on incorrect assumptions, inexperienced brokers or tenants can very easily shoot themselves in the foot.

This prospect assumed that my client was “desperate” and had to close a deal tomorrow.  The prospect also made several inaccurate statements about the market during his “bluff” that highlighted his inexperience in this part of the Houston market.  Without realizing it, the prospect was revealing his financial position, his level of market knowledge, and timing within his bluff.

In Houston, we are blessed with so many great professionals within our industry.  From time to time you will run into people that have a “churn em and burn em” approach to getting deals done, but they don’t seem to be as successful as the professions that really understand the market.  If you have any questions about a lease or purchase in the office or retail market feel free to give my office a call anytime!  (832) 493-3377 JR.