Facility Planning: Presenting an Offer
By now, your broker has been busy sifting through the numerous spaces presented to him by the market. She/he should now narrow your possibilities down to between six-eight options, of which you should further narrow down to between four-five sites to actually visit. If you followed this process correctly, the four-five sites should all meet your needs.
Do not decide on one space only. The only way to be sure you are getting a real market deal is to have the market compete against itself. Choose three (3) buildings that you feel comfortable with. While you may think one is better than the other, approach the market as if all three are your first choice.
Putting Together the Offer
The offer, which is usually referred to as ”Intent to Lease” coming from the tenant (or an “offer to lease,” if it’s coming from a landlord), is considered a non-binding outline of the terms and conditions under which you can/will lease space. More importantly, it should serve as a paper trail of the negotiations. This way, there will be no surprises when it comes time to negotiate the lease, especially if attorneys who had no part in the negotiations are drafting the lease.
The most critical mistake in any offer is that you do not address all the issues.
More often than not, we see proposals that consist of eight or ten basic deal points, such as in our first example. Unfortunately, when it comes to the lease, you now have to renegotiate (or start to negotiate) additional deal points. Here's what we typically see from area landlords or local brokers:
Issue: What The Offer Contained
While this gives you some idea of what you're getting (or more precisely, what you're asking for), we believe a lot more detail is required. Remember that the same proposal will go out to all three finalists.