The Request for Proposal
Plymouth Partners Group uses a formal request for Proposal ("RFP") to solicit offers for our Clients from landlords. While the process of developing an RFP seems straightforward on the surface, it is amazingly complex. On the surface, the process seems to start simply as we uncover and define a client’s needs. Next, we identify suitable locations. Finally, we select the best location and conclude a transaction.
The complexity of the process lies within each of the steps, which are made up of dozens of issues that require careful examination. A mistake on one economic, physical or legal matter could create serious, long-term implications for the Client.
Since there are so many sensitive issues, Plymouth Partners Group spends a great deal of time and effort developing the Proposal. By laying groundwork carefully, a Client can focus on its core business instead of its real estate.
The Process
Since every Client engagement is unique, each project requires that Plymouth Partners Group customize the standard Proposal document it has developed over the years. The Proposal covers every area of involvement, from planning to financial analysis to construction. The document itself includes a background on Plymouth Partners Group, the employees who will work on the project and information on how the project will be analyzed.
Our philosophy is based on providing Clients with the highest quality information and analysis, so that a sound long-term business decision can be reached. As fiduciary representative, by our actions we become an extension of our Client during the course of the assignment.
Our practical, detail-oriented approach begins with a complete understanding of our Client’s objectives. Initially, we examine the following topics so that we can uncover all details and pertinent facts. Additional topics may arise, given market conditions, special needs of the Client and unusual circumstances.
- Relocation versus Renewal
- Buy versus Sell
- Geography/Location
- Financial Structure of the Transaction
- Internal Financial Issues
- Lease Term
- Building Image and Identity
- Aesthetic Impact of the Building and Space
- Physical Composition of the Space
- Expansion, Contraction, Extension Rights
- Security
- Building Management
- Ownership Financial Situation
While examining these issues, we begin the space-planning requirement in conjunction with the Client (and space planner, if appropriate). This defines the Client’s actual needs, both now and in the future. Based on this, we can search the market for locations, which are then presented to the Client. A ‘short list’ of potential locations is then created, including only acceptable buildings, and the RFP is finalized and sent to each building owner.
After the Landlords respond to the RFP, the responses are analyzed by Plymouth Partners Group and presented in an easily understandable, ‘Client-friendly’ format. This analysis is in-depth and involves every aspect of the offer including the financial, physical and legal issues. Every question and point is clarified, leaving no stone unturned, so that when it is time to conclude an agreement, there are no questions. Each location is thoroughly analyzed for its physical attributes, including structure, systems, loss factors, neighborhood, other tenants, maintenance and amenities. We tour the property with all of the appropriate members of the Client’s staff, which encourages thoughtful examination. The latest financial analysis tools, including spreadsheet formats, are used to provide a dollar-for-dollar comparison of each offer. These analyses can be tailored to any special internal needs of the Client.
Based on the Client’s input, the top offers will be developed in greater depth, maximizing the economic value of each and allowing further refinements. During this final negotiation stage, we also examine the offers from the Landlord’s perspective, to see if they are reasonable. After selecting one building, Plymouth Partners Group drafts a Letter of Intent that incorporates all the details discussed previously and presents this to the building owner. This establishes the basis for the lease and provides the Client with an established framework that has as many points already clarified as is reasonably possible. At this point, lease negotiations are commenced. Plymouth Partners Group handles all negotiations and remains the Client’s fiduciary until the transaction is concluded.
Post-Lease and Additional Services
After the lease is signed, Plymouth Partners Group continues to help the Client by providing Post-Lease Services. The Client receives a transaction summary, detailed lease abstract, reduced floor plans, financial projections and other necessary information. Plymouth Partners Group answers questions, deals with the Landlord if requested (regarding escalations, expenses) and handles changes in space requirements.
During the process, in addition to the lease, Plymouth Partners Group can also provide a variety of other services as needed. These include Tenant Construction and supervision, move coordination and relocation (in conjunction with appropriate consultants).
Throughout the course of the assignment, Plymouth Partners Group will document progress through a "Control Book" which will include memos, materials, updates and offers, along with any other pertinent information.
Timing
While each project is different and can have many factors that affect timing, the steps below reflect what a "typical" 50,000 square foot user could expect. Please note that several steps can be done simultaneously.
- Establish Parameters First Month
- Retain Architect/Space Planner First Month
- Analyze Space Requirements Two-Four Weeks
- Review Market Data One-Two Months
- Investigate Buildings One-Two Months
- Analyze Building Functions One-Two Months
- Economic Analysis One-Three Months
- Select Buildings One-Two Months
- Preliminary Drawings One-Two Months
- Retain Law Firm Two-Four Weeks
- Negotiation With Landlord One-Two Months
- Client Internal Approval One-Four Weeks
- Final Space Plans Two-Four Weeks
- Lease Signing One-Four Weeks
- File Plans/Approvals/Permits One-Two Months
Additional items with long lead times must also be scheduled. These can include telecommunications, computers and other mechanical items such as extra air conditioning and soundproofing. In conjunction with the space planning, contractors must be selected and the space must be built (for a simple installation, this averages three to six months). A moving company must be retained; typically, the move can be done in two to four days, with the exception of some equipment.
