In our first installment of practical real estate advice for tenants looking for their new office, we cover the topic of the “Nonbinding Offer”.
When many tenants start to narrow their search down to a short list of specific spaces, the more detailed questions start to flood in. What type of work will the landlord do? How much free rent can I hope for? Can I start the lease 3 months from now? The answers to these questions will help differentiate the spaces from each other and make the selection process easier.
What is important to understand is, that the true answers to these questions cannot be answered until a “nonbinding offer” is submitted. Brokers are generally very knowledgeable on generating a realistic expectation from an initial nonbinding offer however, the only way to generate a complete accurate cost analysis will be to submit the offer and ask. Many times a landlord could be stubborn and buck the trend offering little in the form of construction or concession. Equally common is a landlord that is willing to invest in the space on behalf of a desirable tenant to make sure that they close the deal. Until you have a formal written counter-proposal (also nonbinding on behalf of the landlord) estimates on terms is just well educated speculation.
“Ask and you shall receive” (answers) should be the mantra when looking to determine the clear cost of your potential new office and to help differentiate the true contenders from the lame ducks.
David Goldberg – Managing Director