In this article, we continue the series based on our free resource 12 Step Guide to Lease Office Space that breaks down the primary activities and the general time it takes to accomplish them.

Step 4 of 12: Proposals

An important step in the process of leasing office space is the proposal stage, where you and your broker will request and evaluate custom proposals from potential landlords. This step typically takes one to two weeks and involves sending a detailed Request for Proposal (RFP) to the top contenders.

The RFP should include all important issues related to the lease, such as economics, timing, tenant improvements, operating expenses, parking, renewal options, expansion options, and termination options. Including these details in the RFP will ensure that potential landlords have a clear understanding of your requirements and can provide accurate proposals.

Once you have received proposals from potential landlords, it’s time to analyze and compare them in detail. This analysis should include both subjective and quantitative financial analysis over the term of the lease. Your broker should provide this detailed analysis to help you make an informed decision.

During the analysis phase, you should pay close attention to factors such as lease duration, rent escalations, tenant improvement allowances, operating expenses, property management, and renewal options. These factors can have a significant impact on your overall costs and long-term satisfaction with the space.

Ultimately, it’s important to approach this step with a clear understanding of your requirements and a detailed analysis of all proposals received. Working closely with your broker and taking the time to carefully evaluate all options will help ensure that you find the right space for your business and negotiate favorable lease terms.