After we complete the property tour the we will discuss the top three or four perspective properties that qualify to your exact specifications. Our goal is to treat everybody fairly and honestly so we prepare a detailed request for proposal (RFP) that outlines our requirements for their space to meet our client’s requirements.
The process of RFP and lease negotiation usually takes two to three weeks. We normally have the RFP’s sent out within twelve to twenty four hours after the property tour is completed. Most landlords will respond within three to five business days.
Once we have responses from all the selected properties we prepare a detailed financial analysis of the landlord’s proposals. Our goal is to give our clients an easy tool that they can use to compare the actual expenses for each lease. This give them an unemotional way to review the properties expense to their business.
In the analysis we do our best to include all the expenses associated with leasing the space over the lease term. Some of these items are estimations however they are based upon our experience. Manumits these items are overlooked and they could be a five to a ten percent additional expense to the tenant.
After our client reviews the financial analysis they usually will select the two top properties. We will compare the offers from the two properties and will counter each property with their competitor’s offer to get lower rates for our client. This usually takes a few days and then our client will select the property that they determine is the best financial fit for their business.
At this time the selected landlord would prepare a letter of intent. This document will summarize all the agreed upon terms and conditions. Once the document is signed by our client the landlord will prepare lease documents for our legal review.
I strongly encourage all of our clients to hire a qualified real estate attorney to review the lease documents. The landlord hired a good attorney to design a lease that protects their interests. Your attorney will modify their lease so it is more balanced for both parties.