The RENT blog gives you the resources and tools you need to make the best decisions regarding your real estate needs. We cover a broad range of subjects regarding office space, tenant needs and what to look for when investing in property.
Often referred to as ROFR, the Right of First Refusal is a powerful tool for office tenants. A right of first refusal gives the office tenant the right to lease additional specified office space should an outside party express interest in that office space. The right of first refusal is often preferred to the right of first offer (ROFO). While the ROFO gives the tenant the opportunity to lease a space before anyone else, the ROFR allows the tenant to wait until an offer from an interested party is in and then match the highest offer. A ROFR discourages other parties from bidding on an office space and bidding up the price, since they know the existing tenant has the right to match their offer.
Below is a simple checklist to assist in negotiating a right of first refusal for office space tenants:
Negotiation a right of first refusal is complicated, but settling for terms you do not fully understand can be detrimental to your business. Businesses should retain a tenant representation commercial real estate broker to negotiate the office lease and to guide them through the office relocation or lease renegotiation process.
At Golden Group Real Estate, we specialize in tenant representation real estate services for office space users in the Chicago area, helping local business owners find office space and negotiate lease and purchase agreements. We never represent landlords, so we are prepared to negotiate aggressively on behalf of our tenant clients.
For more on Golden Group Real Estate, read about our real estate services. Let us know if we can help you find office space for rent or buildings for sale. Call us at (630) 805-2463, email us at firstname.lastname@example.org, or enter your office space search criteria below.
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