What I Do Have Are a Very Particular Set of Skills: The Power of Empathy in CRE Negotiations

Negotiations in the high-stakes world of commercial real estate (CRE) can often look like an action movie scenario. As Liam Neeson's character in "Taken," you may envision yourself telling the other person, "What I do have are a very particular set of skills." However, the skill set I'm talking about here isn't about finding kidnappers; rather, it's about empathy, which is considerably more powerful and frequently undervalued in the business world.

Most people imagine strong, unyielding people who never display vulnerability when they think about effective negotiators. But I'm here to tell you that empathy is one of the most powerful tools in your CRE negotiation toolbox, despite being mistaken for a soft talent or even a weakness. empathy—the capacity to comprehend and experience another person's emotions—may seem out of place. However, I can promise you that it is a superpower that can change the course of your discussions and result in more fruitful, win-win agreements.

In CRE transactions, empathy is a strength rather than a drawback for the following reasons:

• Establishing Trust: You can establish trust by proving that you are aware of and concerned about the viewpoint of the other person. More open communication and a readiness to come up with original solutions can result from this trust.
• Finding Hidden Motives: You can more easily identify the underlying wants and motivations of the other party when you approach negotiations with empathy. By using this knowledge, you may create proposals that speak to their main issues and improve the chances of a successful transaction.
• Reducing Tension: Emotions can run high during intense conversations. By recognizing and addressing these feelings, empathy can help you avoid confrontations that might ruin the entire business.
• Developing Win-Win Situations: You're more likely to come up with ideas that work for everyone if you comprehend the requirements and worries of each party. This strategy may result in more robust and long-lasting agreements.
• Improving Your Reputation: In the industry, negotiators who are renowned for their fairness and empathy frequently have stronger long-term connections and reputations. Future negotiations may go more smoothly as a result of this.

Let's be clear now: demonstrating empathy in negotiations does not entail giving in to pressure or putting your own interests last. To achieve the best results, you must combine your knowledge of the other party's viewpoint with your own objectives.

Actively listening during negotiations is the first step in developing this talent. Not only should you listen to what is being said, but also to how it is being said. Make inquiries to get clarification and show that you are interested in learning about their viewpoint. Take into consideration the limitations, demands, and goals of the other person by practicing placing yourself in their position.

When it comes to CRE negotiations, it's important to keep in mind that your "very particular set of skills" should include both the capacity to be harsh when needed and the discernment to realize when empathy can produce better outcomes. Striking this balance can help you close more deals, forge closer bonds with others, and gain a reputation as a tough yet reasonable negotiator.

The next time you're in a negotiation, try to be like Liam Neeson, but instead of using intimidation, use empathy as your superpower. It could be the secret to your next significant CRE achievement.