Best Practices for Submitting a Commercial Real Estate RFP

What Is a Commercial RFP?

Once you've identified the features and amenities your next space needs, a commercial RFP can save real time and effort compared to submitting individual requests to specific landlords one at a time. A commercial RFP goes out to many building owners and landlords simultaneously, listing the specific requirements a tenant needs, from lease rate and square footage to highway or rail proximity and a moving timeline. Landlords respond with properties that genuinely fit those guidelines.

To avoid wasting your own time and the landlord's, always include your exact requirements, or at minimum a range you'd genuinely accept, since landlords need to meet these conditions for you to consider the space at all. A commercial RFP might, for example, offer landlords the choice between a five-year or seven-year term, letting them respond with whichever structure fits their specific building best.

Commercial RFPs aren't as common as they were a decade ago in today's landlord-favored markets, but they remain a genuinely viable option in specific situations. Government entities are frequently required by law to use this process, reviewing multiple proposals before deciding. Large organizations with real negotiating power benefit too, historically exemplified by Amazon's 2017-2018 search for its second headquarters, HQ2, when the company had cities across North America compete directly for its business through a commercial RFP process.

Things to Consider When Submitting an RFP

Whether you use a commercial RFP or the standard process, give your broker a detailed list of everything you need so they can communicate those requirements effectively. It's worth entering this process with a thorough understanding of the fundamentals first.

If cost is a concern, remember that advisor and broker fees never come out of a tenant's own pocket and are never billed to you directly. This is a common misconception, and wrongly assuming that avoiding brokerage services will save money can genuinely work against you in the search.

RFP Best Practices

Start by getting a formal agreement in place with your broker, since RFPs are inherently broker-driven. Being contractually joined with your broker lets them guide you effectively, and confirms to them that they're the only party representing you, making the time investment an RFP requires genuinely worth their effort.

Let the landlord compete for your business. It's on them to demonstrate value through square footage options, rates, lease terms, and moving allowances. Ask directly what distinguishes their building from the rest of the market, and push for their genuinely best offer.

Set a firm due date for RFP responses to keep the process from dragging on indefinitely. Once responses come in, narrow the field to a few finalists, then continue negotiating with each to see what more they can offer.

Multiple negotiation rounds are normal, and often necessary to get the strongest possible proposals. As the tenant, you hold real leverage throughout, since landlords typically don't know who else you're considering or how many other properties are in contention.

Keep the Upper Hand Throughout Negotiations

A TenantBase advisor helps you run an RFP process that genuinely works in your favor, at no direct cost to your business.

Frequently Asked Questions