(Opening to Part 1)
See Part 1 of the leasing process for steps 1 through 5 before continuing with the remaining steps below.
Step 6. Prepare an RFP (Request for Proposal) After touring the desired spaces, we work with our clients to pick the best 2-4 options. We will then work diligently together to complete a space planning assessment program that looks at things today and as they will change thru the lease. As well as, considering any additional requirements (electrical, power, flooring, HVAC, and others). Once completed, we will prepare a detailed RFP incorporating all the information we’ve collected during this process.
The RFP represents a compilation of the many considerations that a tenant has and should be customized to reflect their specific needs. It should be noted that the RFP, once presented, then becomes the basis for a systematic procedure used to document the negotiation and help maintain a focus on issues not fully resolved between the parties. Therefore, we incorporate all of our client’s needs in the RFP, so the landlord has the opportunity to price out the build-out and, in return, we get a proposal back that accurately depicts those additional costs to be factored into the lease rate.
Step 7. Proposals and LOI (Letter of Intent) The approach we take in creating a Proposal remains the same whether a client is looking to relocate or negotiate a new deal to stay at their existing location. We want to make sure to leverage our client’s stance in the negotiations with any landlord that is among the final options. There will usually be multiple proposals sent back and forth to make sure that WRA is getting you the best possible deal at each of the final options. We create a competitive environment with each landlord by creating a level playing field. We can’t stress enough the importance of creating the perception that there is a compelling reason to move with your existing landlord. The existing landlord almost 100% of the time prefers to keep existing tenants. It will cost them more out of pocket to secure a new tenant (e.g. loss of revenue from space being vacant, improvement costs, free rent, marketing costs, etc.).
In WRA’s usual process, brokers negotiate an expressly nonbinding LOI that records the agreed business terms. It becomes the high-level roadmap and economic blueprint for the attorneys drafting the lease. Check the actual nonbinding language and whether any provisions are expressly binding. If the legal effect is unclear, seek counsel before signing.
Step 8. Finalize the Negotiations: After an LOI is signed, the Landlord will prepare a lease. We read through every lease very carefully so we can be completely transparent with our clients and make sure there are not any surprises. Every tenant signing a lease will want to consult an attorney, and we are there with our clients on these calls to discuss everything over with the attorney and, in that way, everyone is on the same page and we know what to discuss with the landlord’s broker regarding the most pressing issues. If it is a fast-moving project, we coordinate calls between the two attorneys to make sure any issues are wrapped up quickly. Once the lease language has been settled, our clients are close to the finish line.
Step 9. A Build-Out Agree on the work scope, budget, delivery standards, and responsibility for costs before signing the lease. A tenant improvement allowance is the landlord’s contribution toward eligible work, while the full project budget may include other costs. Compare the allowance and turnkey approaches using the actual lease and work-letter terms.
1. Tenant Improvement Allowance: Confirm who selects and manages the design and construction team, which costs are eligible for the allowance, how reimbursement works, and who funds costs above it. Obtain comparable scoped proposals before agreeing to the project budget.
2. Turnkey Build-Out: A turnkey arrangement can place responsibility for a defined scope of work on the landlord. The lease and work letter should specify that scope, delivery standards, approval process, change-order pricing, exclusions, and responsibility for delays. Confirm how tenant-requested changes and unforeseen conditions are handled before relying on a fixed build-out cost.
Build a project-specific schedule with the broker, attorneys, landlord, architect, contractor, and relevant specialists. Work backward from the required occupancy date through design, approvals, permitting, equipment procurement, construction, inspections, and early access. Confirm responsibilities, dependencies, contingency, and the consequences of delays in the lease and work letter. Obtain project-specific guidance from the municipality and project team rather than assuming a standard permit or construction duration.
Step 10. Move in and Lease Commencement: After the lease has been signed, we deal directly with the asset manager of the building to coordinate the buildout and move-in process. We will use our experience from past projects to manage contractors, designers, and any number of other construction-related professionals. We work with everyone involved to make sure the project stays on time and on budget. We are very detailed throughout the process, so we do everything in our power to make sure the project follows the necessary timeline and free of any last-minute surprises.
At WRA our job as tenant rep broker does not stop when a lease is signed. We will continue that relationship throughout the term of the lease, whether it’s helping the tenant deal with a challenging landlord, needing to expand, sublease or to downsize.
Finally, when it comes to moving day a there are several things that happen that can lead to stress and distraction. We have a full “Move-in-Checklist” designed to assure you that the move-in process flows flawlessly.
Conclusion. The real estate process can be long and tiresome. At WRA, this is what we do every day so we use our expertise to make sure we never leave our clients behind, which is different from the larger firms looking to get one deal done to move onto the next one and increase revenue to impress shareholders, board members, and other high-level executives. In the end, we can say with 100% certainty that we will go above and beyond for every client to make sure they know they have a team in their corner that is fighting for their best interests.