If you missed last week’s installment, here is Farming the Competitive Bid to Lower CRE Costs Part 1.
Touring
When touring, you’re going to want to have several things handy. The first are your notes. Make sure you take with you all the information you have for verification and a list of any and all questions you need answered. Some things you may want to know that would not appear in most listings include:
- What is the loss factor of this building?
- What would be the Tenant Improvement (TI) allowance, if any?
- Is there a backup generator?
You may also have questions about zoning, security, management and ownership history, etc. And that is why you will also want to have with you, not just the broker for the building, but the owner or property manager as well. There is virtually nothing that the property manager can’t answer or find an answer for you about the building. Something that is also recommended is speaking with current tenants in the building if possible because one thing that you may not get from the landlord is an honest answer regarding tenant experience in the building.
You will also need a camera. (Editor’s note: Be on the lookout for a piece on choosing the right camera for touring and shooting for brochures.) Having pictures to put alongside your building information is always recommended. It really is necessary for those who have not and likely will not see the building before potentially relocating. Additionally, it can serve as a reminder of what building is what when looking at the building names, addresses, and data. Something that we at REoptimizer do for our clients is arrange the exterior and interior photos in a way that simulates the tour on screen.
After your initial tour, you will want to cut your list down to 3 or 4 and see to it that everybody that needs to see the buildings before moving forward does so.
Request for Proposal (RFP)
Once you have your wish list of potential relocation sites in addition to your current leased site, it is time to submit your RFP’s. This is a critical step in step in your negotiation process. We will get more into this process next week, but before we do, let’s take time to understand what this first step does. Submitting your RFP’s:
- Creates a competitive bid environment for yourself, the tenant, and the landlords vying for your tenancy.
- Sets the stage upon which a basis for negotiation will be set.
Check out Part 3
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