How do you present a winning commercial lease proposal?

1 Know your market

Before you prepare your proposal, you need to understand the market conditions, the landlord's expectations, and the competition. You can use various sources of information, such as online listings, brokers, industry reports, and local contacts, to get a sense of the supply and demand, the average rents, the vacancy rates, and the incentives available in your target area. You also need to know the landlord's motivation, goals, and challenges, as well as the strengths and weaknesses of other tenants who may be interested in the same space. This will help you tailor your proposal to the landlord's needs and preferences, and to position yourself as the best option.

2 Define your requirements

Next, you need to clearly define your requirements for the lease space, such as the size, layout, location, amenities, utilities, parking, signage, and security. You also need to determine your budget, your preferred lease term, your renewal and termination options, and your expectations for rent escalation, maintenance, repairs, improvements, and subleasing. You should prioritize your needs and wants, and be ready to compromise on some aspects if necessary. You should also have a backup plan in case the landlord rejects your proposal or counteroffers with unfavorable terms.

3 Draft your proposal

Once you have your requirements and market knowledge, you can draft your proposal using a professional and concise format. Your proposal should include a cover letter that introduces yourself and your business, summarizes your main offer, and expresses interest in the lease space. Additionally, include a business profile with relevant information about your company, such as its history, mission, vision, products or services, target market, financial performance, and growth potential. Additionally, create a lease summary that outlines the key terms and conditions of your offer. This should include the rent amount, the lease term, the security deposit, the rent abatement, the tenant improvement allowance, the operating expenses, and the contingencies. Lastly, provide supporting documentation that validates your offer and credibility. This could include a financial statement, a bank reference, a credit report, a business plan, a market analysis, and a letter of intent.

4 Present your proposal

After you draft your proposal, you need to present it to the landlord or their representative in a timely and professional manner. You can deliver your proposal in person, by mail, or by email, depending on the landlord's preference and availability. You should follow up with a phone call or a meeting to confirm the receipt of your proposal, to answer any questions or concerns, and to express your interest and enthusiasm again. You should also be prepared to negotiate and revise your proposal based on the landlord's feedback and counteroffer.

5 Close the deal

Finally, you need to close the deal by signing the lease agreement and securing the lease space. You should review the lease agreement carefully and make sure it reflects the terms and conditions of your proposal and your negotiation. You should also consult a lawyer or a broker if you have any doubts or issues with the lease agreement. You should also inspect the lease space and verify its condition and compliance with the lease agreement. You should also pay the security deposit and the first month's rent, and obtain the keys and access codes for the lease space.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?