How to formally make an offer on space
If you find office space you like, even if you’re not sure it’s “the one,” you should consider making an offer.
Why? The more offers you make on suitable spaces, the more likely you are to end up in one, even if it’s not your first choice. An unfortunate reality in commercial real estate is that even the most sure-thing deal can fall through at the last minute. In which case you want to be ready to move on the next best available space.
Furthermore, making an offer on office space is a non-binding step in the leasing process. You can withdraw at any time without penalty, making it a low-risk, proactive move that can yield a high reward.
Submitting the Letter of Intent
The Letter of Intent is typically a short document one to two pages in length. It lays out basic lease terms that you and the landlord need to agree on: the amount of rent you’ll pay, the term of the lease, whether renovations are allowed and who is on the hook for the cost of renovations are all considerations the Letter of Intent can surface. Your broker submits it for you, and it can help frame lease negotiations down the line.
So the next time you go on a tour with your broker and you find commercial space you like, don’t be shy. Tell your broker you want to make an offer.