This blog is written by a landlord of commercial real estate in Gulfport, Mississippi. Seaway Business Park is a private company, and we watch over every aspect of our business park, which is a 29 acre commercial office and warehouse complex. We have family businesses in the area dating back to the 1940s. This gives us a unique perspective, and we are excited to share the tips and tricks we have learned over the years. Enjoy!
Remember in college when you were required to scribble (or
type) as many notes as possible in a lecture?
You took notes so that you could prepare for an upcoming
test or final.
In commercial real estate (or any business for that matter),
you must still take notes
After all, isn’t it just as important to ace your next
commercial real estate deal as it was to pass the exam you were preparing for
Commercial real estate transactions are inherently complex.
It is virtually impossible to remember every aspect of a
negotiation, whether for lease or purchase.
That is why it is absolutely crucial to take notes.This is true for both tenants and landlords
and buyers and sellers.
How detailed should you make your notes?
As detailed as possible.
As landlords, we deal with prospective tenants all the
time.It would be nice if a prospect
called and was ready to sign a lease on the first call.
It would be nice but it would also be imaginary.This never happens.
You need to take notes because you won’t remember a
conversation/negotiation that took place 2 months ago (much less several months).Sure, you will remember the most important
pieces, like pricing and lease term.
But will you remember the actual back and forth negotiations
that happened to arrive at a price?Or
Plus, not every transaction moves fluidly. Sometimes, sales/leases are delayed by months or even years.
You never know what tidbits that you write down today will
be important in the future.
Recently, our company negotiated a warehouse space with a new
A price was agreed upon and a lease was drafted.
When the owner came to our office to execute the lease
agreement, he told us that the price listed in the contract was incorrect.
Of course, this was a touchy situation.
Here we have a prospect, ready to sign on the dotted line,
and at the eleventh hour, he says he won’t sign our lease because he claims the
pricing is different than discussed the previous week.
Now, we were not going to quibble over a few hundred
dollars/month because the deal was too lucrative.
However, we knew that our pricing was correct.
How were we so sure?
We take detailed notes.
The prospect welcomed us to do what we had to do but he was
not signing at the listed price.
So we opened our notes on the computer.(Side note: We typically jot notes in short form while meeting with a
client or on the phone and immediately take detailed notes after on the
We arrived at the section where pricing was discussed and
explained what we had in our notes.
“I’m so sorry.”
That’s what the prospect told us.He had looked at so many properties that he
confused ours with another.
“You are right.I’ll
For a long term lease, this saved several thousand dollars.
All from jotting down a few notes.
Not a bad return on investment, huh?
Please feel free to leave comments.We promise to read them all.You can also email us with any
questions/comments at firstname.lastname@example.org.As a reminder, we provide office space for
rent and office/warehouse space for rent in Gulfport, Mississippi.For more information, visit our website at www.seawaybusinesspark.com or call
us at (228) 575-7731.