The property tour of an industrial real estate transaction is a pivotal moment. What may seem ideal on paper can quickly reveal its problem areas with a walk-through, which is why the property tour is an absolute necessity during the sale or lease process. But what if we told you that the property tour is also when almost every industrial real estate client makes a big mistake? It’s such a big blunder, in fact, that it can have a negative impact on the outcome of the entire deal.
What could it be? And, more importantly, how can you avoid it?
This mistake is, simply, saying far too much to the landlord’s agent. And in most cases, you won’t even realize it.
Your agent works to represent your interests alone, and the landlord’s agent is doing just the same. Agents who have been around for a while will do more than just open the door and turn on the lights. They’ll take any opportunity to speak with you, learn about your company, needs and motivation, or anything else you’re willing to volunteer. But be clear – this is information that can and most certainly will be used against you come negotiation time.
The good news is that this mistake can be avoided entirely. It’s why we created our free download, Property Tour Guidelines, a handy guide intended to bring you quickly up to speed on the do’s and don’ts of the property tour.
Your agent is there to protect you from the landlord’s agent, and you can allow him or her to do just that most effectively simply by staying quiet. The less you say, in fact, the better. It’s the innocent comments that tend to do the most damage, so you should do one of two things: direct all questions discreetly to your agent, or take notes to discuss privately with your agent later.
If the landlord’s agent asks you direct questions, you can simply reply, “Our agent will get that to you later.”
Remember that on that tour, you’re the only one who doesn’t lease or sell industrial real estate for a living. The best thing you can do to advance your position in the potential transaction is to stay mindful of your words and actions during the property tour. Download our free Property Tour Guidelines for specific tips designed to increase your negotiating leverage, and remember the golden rule.