The Developer’s Playbook for Negotiating Land Deals with Landlords and Tenants

ASK:

I’m negotiating a land deal and trying to balance what the landlord wants with what my tenant needs. How do I make sure everyone wins?

ANSWER:

Most deals fall apart not because the site is wrong, but because expectations aren’t aligned.

In every land deal, there are three stories running at once: the landlord’s story (long-term value), the tenant’s story (speed and certainty), and the developer’s story (risk and return). If those three aren’t integrated, the deal will eventually fracture.

At I&D Consulting, we specialize in sitting between those parties to build clarity, structure, and trust. We translate what each side actually means, because “I need this fast” or “I want protection” can mean ten different things depending on who’s talking.

How We Approach Negotiations

Start with the Risk Timeline
Every party needs to understand where risk lives. Entitlement risk, construction risk, and leasing risk are all different, and they change hands as the project progresses. Mapping those timelines creates transparency.
Match Risk with Control
Whoever carries the risk should have control over the decision. If the developer carries entitlement risk, they should control design and city interaction. If the landlord funds infrastructure, they should have visibility into timing and costs.
Structure Incentives, Not Friction
We align success metrics like rent commencement, occupancy milestones, or sale triggers so all parties win when the project moves forward.

Why This Matters

We’ve seen great projects collapse because everyone assumed someone else was handling a key detail. By formalizing communication, documenting milestones, and clearly defining who controls what, deals stop being emotional and start being operational.

KEY TAKEAWAYS:

Clarify who carries risk at each stage, and give them the right controls.
Build incentive alignment into the deal structure.
Translate goals into terms each party understands.