How can you identify the other party's BATNA in a commercial lease negotiation?

1 Research the market

One of the best ways to estimate the other party's BATNA is to research the market conditions and trends in the area where the property is located. You can look at factors such as vacancy rates, supply and demand, rent levels, incentives, and comparable properties. By doing this, you can get a sense of how attractive or unattractive the property is to the other party and how much competition or alternative options they have.

2 Ask open-ended questions

Another way to uncover the other party's BATNA is to ask open-ended questions that encourage them to reveal their needs, preferences, goals, and constraints. For example, you can ask them what are their main criteria for choosing a property, what are their plans for the future, what are their concerns or challenges, and what are their expectations from the negotiation. By listening carefully to their answers, you can infer their BATNA or at least narrow down the range of possibilities.

3 Observe their behavior

A third way to identify the other party's BATNA is to observe their behavior during the negotiation process. You can look for clues such as their level of urgency, enthusiasm, flexibility, and responsiveness. For instance, if they seem eager to close the deal, offer concessions, or accept your proposals, it may indicate that they have a weak BATNA or a high need to reach an agreement. On the other hand, if they seem indifferent, resistant, or demanding, it may suggest that they have a strong BATNA or a low need to reach an agreement.

4 Test their assumptions

A fourth way to identify the other party's BATNA is to test their assumptions and challenge their claims. You can do this by asking for evidence, examples, or references that support their statements or positions. For example, if they say that they have other offers or options, you can ask them to provide details or proof of those alternatives. By doing this, you can verify the validity and credibility of their BATNA and also expose any bluffing or exaggeration.

5 Compare your BATNAs

A fifth way to identify the other party's BATNA is to compare your BATNA with theirs. You can do this by evaluating your own alternatives and interests and determining your reservation point or the minimum acceptable outcome that you are willing to accept. By doing this, you can estimate the zone of possible agreement (ZOPA) or the range of outcomes that are acceptable to both parties. By comparing your BATNA and ZOPA with theirs, you can gauge their relative strength and weakness and adjust your strategy accordingly.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?