Discount and Hawkins Essay

1069 Words Nov 14th, 2012 5 Pages
Discount and Hawkins Case

Case Synopsis

The subject matter of the case is presented as a negotiation between a real estate developer, Hawkins, and a possible anchor tenant, Discount Marketplace. Both parties are represented by professional negotiators: Myra Hart is representing the Hawkins Company and Genia is representing the Discount Marketplace. The Hawkins Company is a real estate developer, who is operating across UK, offering different types of services, such as: Mortgages, Energy Performance Certificates, Sales and Lettings. They are interested in having Discount Marketplace as a tenant in a proposed shopping center. The Discount Marketplace is an innovative national retailer with the main activity focused on
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Also the developer held an advantage of receiving a long income stream. In Retailer’s case, the flexibility of being able to move, when required, was crucial. They discussed the problem and the Developer was willing to accept 7 years only if the Retailer accepted a rent step-up clause. This clause would be valid in case Retailer decided to leave and to find another tenant in their place. The retailer declined the offer by arguing that they already agreed on the rent terms. In the end, the issue was solved and the Developer accepted to sign the contract for 7 years.
3. Terms of leaving The Developer made two offers to the Retailer, in case they would decide to leave. First proposal was that the Retailer would have to find a sub-let tenant. The second proposal was to find a sub-let tenant together; The Developer preferred to be the one to choose, since they were doing real estate business and were better qualified and gained more experience in this area. The Retailer representative accepted the second offer. During the negotiation of other terms Retailer repacked the issue with other demands: they wanted to be able to assign another tenant without waiting for the Developer approval. But the proposal was rejected. Since parties couldn’t reach an agreement, retailer proposed to use a qualitative language in respect to possible future tenants. If the proposed tenant fitted the parameters then the developer approval

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