Long term lease perk push
When signing a long term lease is it too much of an ask to get a purchase option on the office space? I know a lot of property owners get enthusiastic about a long term sign, but I wonder if pushing for a sale option at a particular price is too aggressive a move or if it’s somewhat common.
[{"id": "fdd1tuj", "text": "Depends 100% on the owner. \n\nA ROFO might get the job done as well and feel less aggressive.", "replies": [{"id": "fdd502f", "text": "Yes, perhaps I could have my lawyer put in language that would set an expected CAP rate price? I just worry about if the landlord arbitrarily wants me out offering it to me for 10MM then selling it to his brother for 1MM or something. Maybe that\u2019s not possible. I\u2019m more familiar with the ROFR.", "replies": [{"id": "fddtcyb", "text": "I would not agree on a price now.   That\u2019d kill it all together.  Just outline how a price will be determined (typically appraisers and baseball arbitration if no one is agreeable).\n\nAdditionally, I\u2019d discuss it before you have an attorney put it int writing.  This is something that\u2019s typically outlined in an LOI.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fdd43aj", "text": "As a landlord I would never agree to it.", "replies": [{"id": "fdd5714", "text": "There\u2019s blight in certain areas I\u2019m looking into. I assume your property has low vacancies so you don\u2019t need to give the counter party an inch. For those that aren\u2019t as well positioned, perhaps there may be more of an appetite and willingness to bend over backwards to accommodate any level of interest.", "replies": [{"id": "fddxd1i", "text": "This is a good point.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fddbvp5", "text": "It's not unreasonable, but it depends on the circumstances. I've negotiated an option to purchase with a tenant because they were seeking an SBA, and they were trying to get through two more quarters and sell their second business before applying. The devil is always in the details, and you should expect a sunset clause to an option to purchase that is no more than one year from the date of lease execution.", "replies": [], "depth": 1}, {"id": "fddsuls", "text": "So many variable. In short depends on leverage, market conditions, size, landlord experience, landlord type, the building sale cycle, if the option is specific on price and what that price would be etc...", "replies": [], "depth": 1}]