After the building requirements and geographic area is established, the real estate agent puts a survey together of all potential buildings that fit the criteria. The client reviews the list of possibilities and decides upon the facilities of interest, the real estate agent sets up a tour of the facilities the client is interested in. Elbrecht suggested visiting about five a day. After the tours, the company should be ready to develop its short list of facilities and begin talking more seriously to those building owners. A list of two or three also keeps the landlord more competitive in pricing because the potential renter has other options, Elbrecht said.
Companies have two alternatives when commencing negotiations for a lease.
First, they can develop a request for proposal which addresses improvements such as altering office space or adding electrical power, condition of premises, the lease term and timing of occupancy. Then the landlord develops a lease proposal including a rent schedule for the company, based on the terms and conditions set forth in the request for proposal. The gross schedule includes all expenses, while the net schedule breaks out base rent plus real estate taxes and operating expenses for maintenance, insurance and management. Once the basic business terms of the lease transaction have been agreed to by landlord and tenant, the landlord will ask to review the company's financial data to make sure it is a solid rental risk. The press release page is currently being updated.