Negotiation of a Commercial Lease


The Program on Negotiation

An unscripted video showing two different pairs of real estate professionals negotiating the terms of a commercial lease


NOTE: The master for this video was created in the early 1980s. As a result, while the video is quite usable, the audiovisual quality is not ideal.

Based on the PON role simulation Discount Marketplace and Hawkins Development, this unscripted and unrehearsed video shows the dramatically different negotiating styles of two pairs of real estate professionals. Within each pair, one negotiator assumes the role of a shopping center developer, and the other takes the role of a prospective anchor tenant – a leading national reatailer called Discount Marketplace. The two negotiators are tasked with resolving disputed language in the "use, assignment, and subletting" clause of the potential lease.

Because the video is designed to demonstrate different ways to open a negotiation, each negotiating pair is filmed for only the first few minutes of their negotiation. Even in those few minutes, however, it becomes evident that the two negotiations are on dramatically different tracks. The negotiating pairs may be evaluated and compared on several levels, including their comments and questions, their tone, their body language, and the negotiating relationship that they have begun to establish with one another. Viewers of the two pairs often interpret "how the negotiators are doing" very differently, and a viewing can set the stage for a lively debate around negotiation openings.

This video may be used together with or separately from the Discount Marketplace role simulation. Some instructors ask their students to negotiate the role simulation first, and then watch the videotaped negotiators for comparison; the reverse is also an option.

Negotiation of a Commercial Lease Attributes

Time required: Less than 30 minutes
Teaching notes available: No,
Run Time: 9 minutes, 56 seconds
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