An RFP stands for Request for Proposal. An RFP or Request for Proposal is a formalized document that contains a compilation of the many considerations that a tenant has when evaluating potential spaces to lease. The RFP is typically prepared by the Tenant’s real estate agent and outlines the most important business deal points and economic terms that the tenant is interested in for a specific location and / or space.
The Request for Proposal asks the landlord or owner to respond specifically to the items the proposal outlines with the goal being that the tenant can then better evaluate the possibility of leasing the space.
An RFP is technically different than an LOI to lease a commercial space. However, both an RFP and LOI look very similar and typically outline the same important economic and business deal points. Additionally, there are many times a tenant’s agent will submit an RFP to and owner, and the owner or their listing agent will respond by presenting an LOI as their response.