Check whether the use can work before comparing the rent.
A strong offer is not enough if the proposed operation cannot work in the space. Identify the exact use, then ask the appropriate planning office and the owner’s advisers to confirm applicable requirements and lease restrictions. The U.S. Small Business Administration’s location guidance explains that local zoning can restrict business activities and directs businesses to their local planning authority. A commercial address alone does not confirm permission for a particular operation.
Use one worksheet for each serious proposal.
Copy the six prompts below into your working notes. For each, record the tenant’s proposal, the supporting document or named source, what remains unconfirmed, the person responsible and the next decision date. Use confirmed, pending or not workable as working labels. Do not let a high rent turn a pending requirement into a confirmed fact.
1. Proposed use and restrictions
What exactly will the operator do in the space? Record the activities, proposed hours and any special requirements. Ask the responsible advisers to review applicable use approvals, existing lease restrictions and exclusives. Keep the written confirmation or unresolved question with the proposal. Do not assume that a previous tenant’s operation establishes approval for the next one.
2. Operator and funding readiness
Who will operate the business, what relevant experience can be verified, and how will the opening and improvements be funded? Agree on an appropriate confidential process for financial review. Record what has actually been reviewed and who reviewed it. A familiar brand or persuasive presentation does not replace the assessment of the proposed tenant and obligations.
3. Fit with the property
Compare expected customer visits, parking demand, deliveries, waste handling and operating hours with the property’s actual arrangements and neighboring uses. List any shared-space conflicts that need resolving. Ask what would have to change, who would approve it and who would bear the cost. Do not assume that every complementary concept is operationally compatible.
4. Delivery and the path to opening
Describe the proposed starting condition, landlord work, tenant work, building-system needs and dependencies on permits or other approvals. Separate target dates from confirmed commitments. For each major dependency, name the responsible party and identify how a delay would affect the proposed opening and rent commencement. Have the relevant advisers resolve those obligations in the agreement.
5. Full economics, on a common basis
Ask the leasing team for a side-by-side schedule over the same period, using explicit timing assumptions. Include rent, concessions, improvement commitments, commissions, expected downtime and expenses retained by the owner. Identify estimates and avoid counting the same cost twice. Review credit, guarantees and execution risk separately from the cash-flow comparison; the largest headline rent is not the whole decision.
6. The next decision
Finish with one of three actions: continue negotiations, obtain a specific missing fact, or decline the proposal. State the reason, responsible person and review date. If a key use or delivery question remains unresolved, specify the evidence needed before proceeding. Keep the worksheet as a decision record, not as a substitute for the lease or property-specific professional review.
A simple comparison without invented numbers
Suppose one proposal offers more rent but leaves improvement responsibilities unresolved. Another is clearer on delivery but still needs credit review. Neither is ready to win on rent alone. Request the missing evidence from each party, update the same worksheet and compare again. This is an illustrative decision process, not a FIP transaction or a forecast of results.
General considerations for a property discussion. Property-specific decisions depend on verified information and the relevant professional advice.
All owner perspectives