Knowing When You Have Leverage (And When You Don’t)

Welcome back to On The Ground, your bi-monthly CRE newsletter powered by DealGround.

Do you swing the hammer when you have leverage? We’re not talking about debt. Leverage decides outcomes in commercial real estate transactions. The brokers, landlords, and buyers who outperform don’t guess, they know.

DealGround delivers real-time market intelligence so you can handle negotiations from a position of strength.

Leverage Is Everything

In commercial real estate, nothing shapes a deal more than leverage. It decides who captures value and who gives it away. The brokers, landlords, and buyers who constantly capture value know when they have leverage and when they don’t.

If they don’t have it, they go get it or create it.

Leverage shifts constantly. Market conditions, timing, lease structure, and skill all shape your outcome. Here are three common scenarios where knowing how to use, find, or create leverage results in the best outcome:

1. Tenant Renewal Requests
When tenants ask for lower rent or concessions, owner leverage comes from market data: trade area comps, understanding availability in the market, and having an understanding of how your tenant is performing in your building. Knowing the intel allows negotiation from a position of strength.

2. Multiple Offers on the Table
More offers will certainly create more negotiating power. Turning those offers into leverage comes from overqualifying a buyer until they have convinced you they will perform.

3. Representing Buyers
Representing the strongest buyer means amplifying their certainty of close. Don’t have the best buyer? Find other ways to stand out (shorter contingencies, creative structures, buyer asset class and trade area expertise, etc.). In both cases, leverage is about being the most reliable path forward.

The Time to Build Your Intelligent Data System Is Now

In every scenario, the deciding factor is the same: market intelligence. Without it, you’re at a disadvantage. With it, you have the clarity to successfully navigate negotiations, maximize value, and move deals forward with confidence. DealGround provides that intelligence instantly so you never step into a negotiation unprepared.

LFG!

DealGround