Negotiations: LOIs and the redlining of documents is often used to negotiate the terms of a contract, and this process can be time-consuming as both parties work to reach agreement on all the details. In many cases, this process can take several rounds of negotiation between the tenant and landlord’s representation.
Legal review: Attorneys are involved in the process to ensure that all legal requirements and obligations are met, and to protect the interests of their clients. This can slow down the process as the attorneys review and revise the terms of the agreement to support that goal.
Complexity: Healthcare leases can be complex with the additional language needed to protect the tenant. Along with that language, there are typically several concessions that take negotiating (build out allowance, space delivery, build out/free rent time, etc…)
Protecting interests: Both parties want to ensure that their interests are protected, and this can lead to extensive negotiations and back and forth exchanges of LOIs and redlines.