“The Code is more what you’d call ‘guidelines’ than actual rules.” 
​- Captain Barbossa

The term “parlay” in Pirates of the Caribbean and “asking rents” in commercial real estate have different literal meanings, but there are interesting parallels between them when considering their strategic use in negotiations. 

“Parlay” in Pirates of the Caribbean:

Definition: In the movie, “parlay” refers to a formal negotiation or truce between pirates, allowing for peaceful discussions under a temporary ceasefire. It’s a pirate’s right to request a conference with their adversaries without fear of harm.

Use: Parlay is invoked as a strategic tool, often used to stall, negotiate better terms, or to prevent immediate violence. It’s a way to reset the terms of engagement, opening a dialogue between parties who would otherwise be in conflict.

“Asking Rents” in Commercial Real Estate:

Definition: Asking rent is the initial price per square foot that a landlord or property owner sets for leasing space in a commercial property. It is the price they propose during the early stages of negotiation.

Use: Asking rent is rarely the final rental price. It’s a starting point in negotiations, allowing potential tenants and their broker to discuss and potentially offer counter terms based on market conditions, tenant demand, and property value. Tenants can then negotiate for concessions, lower rent, or better terms.

Comparing Parlay and Asking Rents

Starting Point for Negotiation:
In Pirates of the Caribbean, “parlay” creates a starting point for discussions that could lead to mutual agreements or compromises. Similarly, in commercial real estate, asking rents serve as the initial offer from which negotiations begin. Both create a formalized opportunity for dialogue and negotiation.

Not Final Terms:
Parlay does not guarantee a peaceful resolution or fair terms—it simply opens the door to discussion. Likewise, asking rents are not the final terms of the deal; they are meant to be negotiated based on factors like tenant needs, market conditions, and lease length.

Strategic Leverage:
Pirates use parlay as a way to buy time, gain leverage, or force the opposing side into a discussion when direct confrontation may not be in their favor. In real estate, landlords set asking rents higher than what they expect to finalize, giving them leverage to negotiate downward while still meeting their financial goals.

Temporary Arrangement:
Parlay only temporarily halts conflict, and its results can vary. Similarly, the asking rent is a temporary marker—it’s flexible and often adjusts based on market demand, concessions, or tenant requirements.

Conclusion:
 In both cases, parlay and asking rents serve as tools for initiating negotiations and setting the stage for further discussions. Neither represents final terms but rather an invitation to engage in a conversation where both sides can potentially alter the outcome. Both terms highlight the importance of negotiation in shaping the final agreement—whether it’s between pirates or commercial tenants and landlords.

About CroninCRE:
At CroninCRE, we exclusively represent tenants. Never landlords. We provide real estate advocacy negotiating on our client’s behalf without conflict of interest.
 

When it comes to commercial real estate transactions, California lawyers and brokers are held to different standards regarding conflicts of interest.
 
Advocacy and Representation
 
Lawyers are bound by strict ethical rules and must prioritize their clients' best interests above all else. Dual representation, where a lawyer represents both parties in a transaction, is generally prohibited due to the inherent conflict.
 
In California, commercial real estate brokers also advocate for their clients' interests but are allowed more latitude in their approach. They can represent both sides of a transaction, known as dual agency, as long as both parties provide informed written consent. While this practice allows brokers to facilitate transactions, it limits their ability to fully represent each party's interests.
 
The Risks of Dual Agency
 
While dual agency may seem convenient, it can create conflicts of interest. Brokers representing both parties may have difficulty providing impartial advice or negotiating aggressively on behalf of one client without compromising the interests of the other. This can diminish the value of having broker representation.
 
Practical Tips
 
When working with a commercial real estate broker, it's essential to ask about potential conflicts of interest. If the broker represents both landlords and tenants, their ability to advocate exclusively for your interests may be limited.
 
Choosing the Right Representation
 
To ensure you receive the best possible representation, consider working with a broker who specializes in representing tenants. This guarantees that they will prioritize your interests and avoid conflicts that could arise from dual agency.
 
At CroninCRE, we exclusively represent tenants. Never landlords. We provide real estate advocacy negotiating on our client’s behalf without conflict of interest.