Someone Is Always Applying Pressure
Negotiating an office lease is not like most financial transactions. Outcomes aren’t dictated by a single metric—they’re shaped by a complex blend of variables: building class, age, views, landlord cost basis, loan structure, amenities, motivation profile, vacancy, and market dynamics. While experts can project a fair market value using comps from recent arms-length deals, real leverage—and real savings—only emerge through a thoughtful, iterative negotiation process that forces landlords to compete.
Some companies hesitate to engage an advisor, telling us, “We have a great relationship with our landlord—we don’t want to upset them.” That relationship often includes lunches, box seats, hosted events—all straight from the standard landlord playbook. There’s nothing inherently wrong with it. It’s smart business for landlords to cultivate goodwill with tenants.
What is wrong, however, is when that goodwill clouds judgment. Just because your landlord is friendly doesn’t mean you should skip a full market assessment or give up the leverage you’ve earned. Even worse are the instances when landlords tell tenants they’ll “get a better deal if they don’t use a broker.” We’ve addressed this myth in depth before
It’s always baffling to us when companies:
Enter a multi-million-dollar negotiation without professional representation, and
Take at face value that a landlord—whose job is to maximize profit—will simply hand over a sweetheart deal.
Landlords don’t give tenants better terms out of kindness. They apply pressure—subtly or aggressively—to get the best outcome for themselves. That’s the game. And tenants who aren’t applying equal or greater pressure in return are losing value.
Negotiation is about tension. At some point, each party becomes indifferent enough to walk. Maximum value is found just shy of that point. That’s where the most seasoned advisors operate.
In San Francisco and other major markets, the balance of power shifts with the tides. For years, landlords held the upper hand. Now, tenants—when properly advised—have real options. Pressure is part of the process. But it's also the tool that unlocks your best possible outcome.