Leasing Commercial Real Estate The Power of the X
I am reminded of a story told by Brian Tracy in his book Focal Point about a nuclear plant with a major technical problem. The malfunction was causing the plant to be very inefficient in generating energy compared to similar nuclear installations. After much energy and effort being expended by the plants in house technicians, it was decided to bring in one of the nations top nuclear consultants. The consultant spent two days in the plant questioning workers, checking gauges and equipment and making many calculations in a small notebook.
At the end of the second day, he pulled out a blackmarking pen and placed a large “X” on one of the gauges. “This is the problem” he explained. “Repair and replace the apparatus connected with this meter and the problem will be solved. “ Then the consultant packed up his briefcase, his pen and his notebook and left town.
A few weeks later the plant manager received a bill for $10,000. Incensed he demanded an itemized bill for what he felt was an excessive charge for “just walking around and putting an X on a gauge”.
The consultant sent back by return mail his itemized invoice. It stated “For placing an “X” on the gauge $1.00. For knowing which gauge to put the X on: $9,999.00”.
This simple story demonstrates the most important single principle of success in leasing commercial real estate – knowing where to put the “X” in every part of the process of finding space and negotiating a Lease is the critical determinant of how much rent a Tenant will pay, whether or not the space is the right one for your company and whether you are protected from hidden legal business and accounting issues that can cost you money, time and headaches. This book will help you to place the X for your company.