Office Space – Average time between Site Selection and Contract Execution

chair_raceSite selection can take as long as it takes to identify a location and negotiate a good transaction. There are many variables to consider when trying to estimate the length of time to executing a real estate contract.

Some factor’s may include the landlord’s and tenant’s negotiation style and tactics, how well organized the stakeholders are and the knowledge of your real estate broker.  Then there’s the tenant’s due diligence, architectural test fits and possibly engineering reviews. Once all these issues are out of the way, legal review and contract language negotiation may be extensive.

While every situation is different, the average office lease we’ve worked on can be completed within 60-90 days after offer sheet is agreed upon. The time frame to completion can certainly be as aggressive as 45 days, and be as lengthy as 6 months and longer.

Here are options you may consider to speed the process along (by no means an extensive list but good to start):
• Your real estate broker who is knowledgeable in your market and is an experience negotiator can make a big difference
• Obtain a well-defined Letter of Intent from the Landlord
• Ensure your needs are spelled out in the Tenant Improvement Work Letter

Be careful not to speed up the process just to get to contract. You are forming a long-term relationship with the landlord just like a marriage. Speeding through will often lead to mistakes and add unnecessarily costs to your relocation budgets such as construction, furniture, fixtures and equipment (FF&E), telephone and moving.

Remember, it’s not a race. And ensure you consider some room for error in your schedule.
basis for negotiating tenant improvements

Richard Neuman is an Owner’s Rep and Move Consultant with NY based Relocation Management Solutions, Inc.

1 Comment on Office Space – Average time between Site Selection and Contract Execution

  1. That’s the problem with some people, they think it’s a race. They rush just to get a contract. How well organized the stakeholders and the broad knowledge of your real estate broker are definitely on top of my list, too!

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