Why Isn’t the Landlord Responding to My Proposal?
As a commercial real estate broker, I often wear two hats, representing both tenants and landlords. When I’m working for a landlord, one frustratingly common scenario is a promising tenant being represented by an unqualified broker. It fills me with angst because I can see the likely outcome, and as the landlord’s agent, my hands are tied in guiding the tenant’s approach. I can’t control the proposal they ultimately submit.
➡️ For insights into why hiring an experienced broker matters, check out Should a Company Hire an Exclusive Broker?.
Recently, I received a proposal from a tenant whose representative was a young residential real estate broker. The offer was a staggering 30% below the asking price. While negotiation is expected, this proposal was also missing numerous standard clauses and economic provisions found in a Letter of Intent (LOI). Furthermore, it provided no information about the tenant’s business – a crucial opportunity to paint them in a positive light.
When I called the broker to point out that the offer was overly aggressive and incomplete, his response was simply that I should tell him what I needed. This clearly indicated a lack of understanding and the gravitas necessary to properly advise his client.
Unsurprisingly, when I presented this proposal to my busy landlord client, his reaction was dismissive: “This is a waste of time. The tenant isn’t serious. I’m not responding.”
➡️ For tips on crafting strong proposals that landlords take seriously, read Deal Economics in a NYC Lease: What You Need to Know.
This situation highlights a critical issue. This tenant may very well have a viable business, but their choice of representation led to them being perceived as unserious, causing the landlord to disregard their proposal entirely. Once negotiations derail like this, it’s incredibly difficult to get them back on track.
It’s important to remember that landlords with vacant space aren’t looking to make a deal with just anyone. A poor tenant choice can result in significant financial and legal headaches. They’ve likely experienced this firsthand, making them instinctively wary of proposals that raise red flags. Whether this initial assessment is accurate or not, being represented by an unqualified broker who doesn’t know how to craft a strong proposal and effectively present the tenant can lead to a missed opportunity for a potentially excellent company.
➡️ For guidance on navigating lease negotiations effectively, explore Blend and Extend.
For guidance on submitting a proposal that will garner the landlord’s attention please contact me at:
Paul Walker
212-984-7117