What are the best ways to handle unexpected surprises during an industrial property negotiation?

Sin lugar a duda, prepararse para una negociación será siempre una buena práctica para anticiparse a cualquier escenario y lograr un buen performance. Prepararse involucra no sólo saber y conocer información clave, motivantes y aspiraciones de cada una de las partes, también debe considerarse una debida diligencia o Due dilligence inmobiliario que nos aporte claridad sobre las viabilidades y factibilidades técnicas, arquitectónica-estructurales y jurídico- legales que hagan posible saber la realidad del inmueble, prepararnos y anticiparnos a los posibles escenarios, administrando y controlando los riesgos,

Here is one thing that you can always count on during an industrial deal: that each deal is slightly different and there are always going to be unexpected surprises. This is important to relay to your buyer or seller if this is their 1st transaction, or 10th. What I like to do depending on which side of the transaction you are on, is put together a timeline and tasks from offer acceptance, to close. Then go through each of those items to discuss potential issues or hurdles. This tends to keep a "map" to keep the deal on track and something to refer back to during negotiations.

The best way to handle unexpected surprises is to expect the unexpected. Industrial properties typically have their unique challenges such as zoning , parking , environmental and other matters. Being prepared with risk mitigation strategies and a collaborative approach will usually make an important contribution to resolving any unexpected speed bumps

Generally, when a property goes under contract you have a buyer or tenant who wants the space, and a seller or landlord that wants to facilitate that need. When both parties are motivated, you can generally get through most challenges by clear communication and a professional demeanor.

That is why it is necessary that the proper amount of due diligence time is available for the Buyer to investigate ALL aspects of the property. And then for the Seller to be prepared to offer possible concessions or price reductions (as needed for repairs or environmental issues) that are discovered by the Buyer. If both parties continue to resolve the issues in a good faith negotiation pattern, those challenges can be overcome to the satisfaction of both which leads to a successful closing.

Experienced legal representation is always essential for any property negotiation. There will always be issues, large or small, that arise somewhere in the due diligence process so it is imperative to have the right team that is equipped to help you through any situation. This support and protection starts with the language in your purchase agreement that will ensure you have flexibility and options when something comes up. Whether negotiating an extension or a price reduction, a good attorney with experience in your industry can help you get the most of, or get out of, a complex situation.

When faced with unexpected surprises it's essential to approach the situation with a clear and level-headed mindset. Firstly, take the time to fully understand the nature and implications of the surprise. Is it a change in zoning regulations, environmental concerns, or unexpected costs?Then communicate openly with the other party. Next, explore potential solutions that address the concerns of both parties. Brainstorming alternatives and being open to compromise can lead to creative solutions that mitigate the impact of the surprise. Throughout the negotiation process, maintain a positive attitude and focus on achieving a mutually beneficial outcome. By remaining flexible and adaptable, you can overcome unexpected challenges.