It has been a momentous week in anybody’s book with the election of Barack Obama as the president of America and a new National government in New Zealand.

One thing has struck me about both elections which I believe heralds a new era of leadership around the world. And that is the way in which winners and losers in both races had a great deal of graciousness and generosity in acknowledging their opposition. Add to this the offers by winners and losers to work closely with their rivals to deal with the immense financial challenges the world is facing.

It is I think a new era of collaboration.

We have heard talk of the need to collaborate now for several years, and I believe now there are great economic challenges to deal with, those who in the past have competed intensely, or have opposed one another in business, politics or other endeavours, will find new ways to create a greater strength through combined efforts, new alliances, and creative partnerships.

In a number of previous blog posts I’ve talked about how landlords and commercial tenants can work together for mutually beneficial deals, rather than holding out for the top dollar deal, or bargain for the cheapest deal. Playing hardball in this day and age to gain advantage is not going to carry the day.

There was a case recently where a large property management company that had bought and developed land and properties, and was keen to get tenants, significantly reduced their profit margin in order to secure tenants. The alternative was an unlet space that was going to do no one any good.

It sounds almost blasphemous to say, but perhaps this is an era when we are going to have to rethink profit margins and expectations, costs and our business models, so that we can make deals that stick for both parties. Those that can find creative solutions where the landlord goes out of his way to make a lease and property attractive for a tenant, and where the tenant goes out of his way to provide security and agreed terms that will benefit the landlord, will be those that do best out of the new economic conditions we all face.

I invite readers to email their thoughts. Where will property end up under the new leadership both internationally and here under John Key?

What will it take for people to find new opportunities between landlord and tenant in the new economic environment?

This entry was posted on Tuesday 11th November 2008 and is filed under Property Leasing. Both comments and pings are currently closed.