Stage 5 – Execute
Stage 5 is the implementation of the agreement made between yourself and the other parties involved. In this case, the fifth stage is all about executing the lease agreement, which is a legal contract in an exchange of certain rights over land.
An executed contract is a legal document that has been signed off by the people necessary for it to become effective. The contract itself is often made between two or more people, but it can also be between a person, entity, or multiple entities.
Great care must be taken in reviewing and understanding the contents of the entire document package, as these may include a series of separate documents as well as associated obligations. These may include a Letter of Offer, (formalising the terms from Stage 4- The Conclude), Draft Lease, Lessor’s Disclosure Statement, Agreement to Lease, Bank Guarantee, Certificate of Currency and the list continues on.
This stage may also be viewed as preparation for the next negotiation opportunity. Although it is hard to believe so with a new lease term, this is not the case, as in politics “no sooner have politicians been elected, they are campaigning for the next election”.
But unlike an election, it is essential to follow through on promises (or representations) made in order to strengthen relationships and build trust. This will lead to easier negotiations next time around.
It is also important to remember that during the execution it is advisable to apply the total negotiation process to the rise of unexpected events, failures in performance and inevitable changes.
Anticipating complications is difficult, however, Retail Shop Leasing is one of the most complex layer cakes of negotiation, involving numerous internal and external parties. It may be wise to keep negotiation strategies on standby.
As this is the final segment in this mini-series, we look forward to bringing you other related topics on the negotiation, management, and strategic tools needed to be an effective Retail Lessee.