- December 2010: Vol. 22 No. 11

To read this full article you need to be subscribed to Institutional Real Estate Americas

Money Talks: Investors Regain the Upper Hand in Negotiations

by Amy Wells, John Kuhl, and Erica Bose

During the prior market run-up, operating partners in real estate joint ventures enjoyed a great deal of leverage in document negotiations. The imbalance was partially due to the number of equity investors seeking quality operating partners. With the market reversal, the leverage pendulum in negotiations between equity investors and operating partners in real estate development joint ventures has swung in the investors’ favor. With a diminished availability of capital, competition among operating partners for equity investors has increased. While the bargaining positions of the parties still vary based on factors such as the reputation of the operating partner, the desirability of the real estate, the anticipated duration of the venture and the relationship — or lack thereof — between the operating partner and the investor, in general, the shift in the economic climate has given investors the upper hand when negotiating the terms of joint venture agreements. The following is a

Glossary, videos, podcasts, research in the Resource Center

Forgot your username or password?

Close your account?

Your account will be closed and all data will be permanently deleted and cannot be recovered. Are you sure?

We respect your privacy! Please give consent for processing data as described in our Privacy Policy