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Updated over 1 year ago on .

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4
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1
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Scott Cash
1
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4
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ROFO in Lease - Will this hurt resale???

Scott Cash
Posted

We own a large industrial building. We are re-negotiating with the tenant for a 5 year lease. They wanted a Right of First Offer clause added to the lease. We agreed, however we wrote it to not survive if we sold the building to a new owner. We did this because we were unsure how a buyer would look upon the clause and thought it may lower the value of the property if we were ever to sell. The tenant wants the clause to be survivable to the new owners. The question is, will it hurt the value of the building when we go to sell or should we not get too hung up on it?


If you have experience dealing with ROFOs, would love to hear your thoughts. 

(ps. This is not a Right of First Refusal. It just states they have 30 days to make an offer before we list it. We are not obligated to accept it.)