Having All of the Leverage — by Dan Lynn
By Dan Lynn
Many years ago, I owned a historic building on Main Street in the center of Flemington, New Jersey. The building had an incredible past and, in modern times was home to my wife's gift shop and was also an incubator spot for several of my technology ventures including RelevantNoise, an innovative, AI-powered social media mining technology. The building sat right across the street from the Hunterdon County Courthouse, where in 1935 Bruno Hauptmann was tried for the kidnapping and murder of the Lindbergh baby — the original "Trial of the Century." During the trial, the town was so overrun with press that the overflow of reporters covering the trial actually stayed in my building. Right next door stood the famous Union Hotel, where the star journalists slept.
By the time I owned it, the romance of the town was long gone. The downtown was struggling and my building sat next to a boarded-up landmark. If I wanted to sell, I had essentially no leverage — just an old building beside an empty hotel.
Then the hotel went up for sale. Three developers bid, and one night the town held a meeting where each set up a booth to present their vision. I went, mostly out of curiosity.
I was stunned by what I saw. One developer's plan — far and away the crowd favorite — was designed using my building as an important element. They'd designed a walkway connecting the Union Hotel right into my building. There was going to be a restaurant on the first floor and apartments on the second floor. The whole town loved it. The funny thing is that not one person had ever called me and asked whether I'd ever sell or tried negotiating a price with me in advance of the proposed development plan. They had sold an entire town on a plan that depended on an asset they didn't own and had never even asked me about.
I drove home and told my wife: "I'm waiting for my phone to ring. Maybe not tonight, but soon. That developer is going to call."
Well, they soon called and we met. At the start of the meeting, I said it plainly: "I don't want to be rude, but I have all the leverage and you have none. You sold this town on using my building, and you never once spoke to me. So, again, I have all of the leverage in this discussion and you have none." But I also told them the truth — I wanted what was best for the town, I wouldn't rake them over the coals, and I'd sell at a fair price.
That's the thing about leverage: it isn't fixed. I had none — until their own plan made my building essential. Circumstances create it, and often the other side hands it to you. The skill is recognizing the moment it shifts, naming it without flinching — and then, if you can, using it. Having leverage in any business discussion is key. Build, buy, or find leverage.
I sold the building and an adjacent parking lot that I also owned for a fair but very good price. Having leverage is a great feeling.
Just an update: I sold the building almost 15 years ago. Since then, the development project (including my old building) was acquired by another developer. As of this writing, the Union Hotel is due to open its doors this summer - the summer of 2026. The developer did an incredible job balancing the historic buildings and town with a modern redevelopment effort. It's going to be a transformational project for my old town. Although it took over a decade to complete, congratulations to everyone involved. I'm excited to see how my old building has been transformed.