You represent the Acme Development Corporation, a local real estate development company that built a popular shopping center in Ojai. To recoup their construction costs, Acme sold 20 of the buildings in the shopping center immediately and leased the other 10 buildings for a steady revenue stream. Each building comes with a private loading area that storeowners use to restock their inventory.

Acme recently decided to sell their rental properties in the shopping center to raise capital for a new development. Last week, the company finalized a deal to sell Building 12 to Ojai Taxes, a local tax preparation company. Ojai Taxes bought the building, but did not purchase the loading dock because tax preparation specialists do not need to load or unload merchandise very often.

The Acme Development Company has contracted you to negotiate with Blue Sky Foods, the upscale organic grocery that owns and occupies Building 11. The loading area for Building 12 is directly adjacent to Blue Sky Foods. Although they do not know the owners of Blue Sky Foods very well, Acme believes that Blue Sky Foods may be interested in purchasing the loading area.

The sale price is the only issue that matters in this negotiation. You would, of course, like to sell the loading dock for as much money as possible. You estimate that Acme originally paid $120,000 for the land currently occupied by the loading dock. Real estate prices have not changed much in the intervening years, but the shopping center is thriving. You would love to make a large profit on this sale.

If you are unable to sell the loading area to Blue Sky Foods, you will sell the loading area to Brewer's Beers, the store in Building 13. After a few rounds of back-and-forth, Brewer's Beer made their final offer: a sale price of $135,000.

Self-Assessment

1. What are the issues in the negotiation?

2. What are your interests (and position)?

3. What are your alternatives?

4. What is your BATNA (and how can you improve your BATNA)?

5. What is your target price?

6. What is your reservation price?

Assessment of the Other Party

8. Who are the other party?

10. What are the other party's interests (and position)?

11. What are the other party's alternatives?

12. What is the other party's BATNA?

13. Any options for mutual gain?

Your strategy or plan for this negotiation (with supporting arguments/reasons)