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Lease

Commercial Leasing in Northern Virginia
with Ray Repage and the Repage Team


Understanding the lease process, from beginning to end...  it's not rocket science, just employing good business practices.
I have vast experience in:
    * Helping your company analyze its needs and determine the square footage requirement
    * Providing a method of property comparison analysis based on a market survey
    * Developing the Request For Proposal (RFP)
    * Negotiations including lease clause analysis and other issues of significance

The focus of negotiations in a lease transaction is usually directed toward the issues of base rent and concessions, but there are many other important concerns which are often overlooked, misunderstood or under-negotiated.

Leases are usually very long, complex and often printed in very small type.  For the most part, everyone hates to read them.  When everything goes as planned, most any lease will serve the parties well but the true test occurs when there are bumps along the way.
If the lease has not been carefully drafted, the bumps can become major problems.  I will work diligently to protect your interests.

Space Acquisition
The components of a tenant’s successful campaign to lease space are as follows:
·   Determine Space Requirements / Analyze Needs
·    Location
·    Amenity and Service Requirements
·    Space Components/Staffing Projections/Square Footage Requirements
·    Survey Market
·    Selection of Qualified Properties
·    History of Current Landlord
·    Technical Property Review / Physical Tour
·    Proposal Process
·    Prepare the Request for Proposal (RFP)
·    Distribute the RFP
·    Review Proposals (landlord responses) and preliminary space plans
·    Evaluate Offers
·    Review Owner Performance, Tenant Satisfaction
·    Review Technical and Locational Data
·    Negotiate
·    Consult Legal Counsel
·    Implementation of Tenant Resources
·    Mutual Execution of Lease Document
·    Planning / Permitting / Construction (if applicable)

The Request for Proposal (RFP)
Essentially the negotiation process begins with a comprehensive RFP.  The actual RFP can only be developed after the tenant has developed a thorough understanding of needs and qualified properties have been identified.
In a sale transaction, this is the point when an offer would normally be submitted.  In the process of acquiring leased space, the offer is replaced by an RFP.  RFP’s can be submitted to multiple properties at the same time because the tenant is merely soliciting a proposal from the landlord.  This should be thought of as the tenant’s wish list and becomes a critical component of the negotiation in the following ways:
·    The landlord responses will give the tenant a great deal of market knowledge.
·    A competitive atmosphere will have been created between landlords.
·    At least one property will usually express a profound desire to consummate the transaction and when this occurs, the tenant’s negotiating position is strengthened.
·    Negotiations that have been well documented in the RFP can help establish the intent of the parties in any future dispute.

Considerations I make when developing the RFP include:
·    Address ALL of the tenant’s needs and core requirements.  Included are such things as expansion (i.e. right of first refusal), renewal options, etc.  
·    Insert legitimate items that are “throw away issues” for the tenant and define the other areas of flexibility prior to the start negotiation.  
·    The content of the RFP should be consistent with market conditions and take into account what is attainable by this particular tenant in the current marketplace.

The Landlord’s Response
The landlord’s proposal or response to the RFP is often presented in a form in which it is difficult to determine the landlord’s response to each particular point in the Tenant’s RFP.  As a result, I make certain to track the progress made on deal points while also making sure that all the original points outlined in the RFP get addressed. 

Contact Ray Repage about your commercial real estate needs.

 

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