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Plymouth Partners 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 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.
Since every Client engagement is unique, each
project requires that Plymouth Partners 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,
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 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
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 handles all negotiations and remains the Client’s
fiduciary until the transaction is concluded.
After the lease is signed, Plymouth Partners 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 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
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 will
document progress through a "Control Book" which will
include memos, materials, updates and offers, along with any other
pertinent information.
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.
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