Once your Deal has been created and we’ve added a tenant contact we can begin creating our initial proposal to the tenant in Deal Manager. Below we will highlight how a proposal can be created and the data that is required vs optional.
Creating a Proposal
To create a proposal, I need to make sure a property is specified on the Deal if I didn’t do that when initially creating the Deal record. Going to the Deal Details tab, I select the property and hit save.
Once a property is associated with our deal we can now click the Add Proposal option found under the Deal Proposals tab.
Proposal Entry Form:
Required Fields on Proposal Entry
There are some fields that are required before a proposal can be saved.
Lease Type: Select Net, Gross, Modified Gross, or Retail.
Proposed SF: If no space exists or if the proposed SF of this deal is above/below the current unit SF input the proper proposed SF value here. Otherwise the value will default to SF of the space selected.
Start Date: The proposed start date of the Deal
Term: Number of months for the proposed deal
Starting Rent: Enter in the starting rent for this proposal. Dropdown option allows for denoting rent in $/SF/YR, $/SF/MO, Flat Amount Annual, Flat Amount Monthly
Optional Fields on Proposal Entry
There are many fields that are available depending on the type of deal that will affect Deal Economics. These may not be required for every deal but should be entered as they exist in an offering to the tenant.
Proposal Name: This can be changed to any name you would like to call the proposal. We will default a name, but this can always be over-ridden (/ex/ Initial Proposal 1, Tenant Counter 1, Final Version, etc)
Space: If one exists select the space here.
Move In Date: If the move in date will be different than the start date for this deal you can input that value here. If nothing inputted, it would default to the start date at save. A Move In Date will transfer to Voyager.
Possession Date: If the true possession date is different than both the Move In date and the Start date, you can input that value here. This would typically be used if there is construction happening and the client takes possession of the unit without actually moving in.
Downtime: Typically used for tracking the number of months prior to the tenant taking possession and paying rent. You can input a Possession date and input a Downtime for the Start Date to auto-populate for you.
Termination Month: If Termination option is present, enter the month of the lease term the option expires.
Holdover %: If this tenant has the possibility of going into Holdover, you can mark that % here.
Rent Escalation: Enter in the % or /sf escalations for this proposal. Leave blank for deals with no rent escalations.
Free Rent Schedule: Using the Add Step button you can add free rent steps to your proposal. You would select the start month, the number of months, and the % of rent that will be abated. In the below example Rent will be 100% abated at Month 1 (start of the lease) for 3 months.
Additional Charges: Additional Revenue charges to be added to the deal and counted towards our NER Calculation. Simply click Add Charge and select the additional charge from the list of values available.
Expenses: Expenses will auto-populate based on the Actual/Budgeted property level expenses. You can over-ride to other values if desired. Landlord Year 1 denotes Non-Recoverable expenses. Tenant Year 1 denotes Recoverable expenses.
Transaction Costs: If this deal requires a Tenant Improvement or any other type of leasing cost (landlord work/concessions) then select the appropriate cost from the dropdown and input the $/SF or flat amount of the cost. Additional costs can be added by selecting “Add Custom Cost”
Commissions: Select the Commission dropdown that applies to this deal for the Landlord Rep (you) and the Tenant Rep (tenant broker/representative).
Security Deposit: Enter in the total dollar amount of security deposit if known
Security Deposit Notes: If the security deposit is yet to be determined notes can be entered here to discern what security deposit would be.
Percentage Rent on Proposals in Deal Manager (For Retail Leases)
If you have a deal that requires percentage rent, you must make sure the Retail lease type is selected. Once selected new fields will appear under the General Information and Rent Schedule Section
Sales Category: Select the sales category this tenant falls under if applicable
Estimated Sales: Either flat amount or /sf enter the estimated sales for the calendar year they will move in. If no estimation available leave blank.
Growth: If we have input estimated sales we can also input an estimate of growth of sales year over year.
Natural Breakpoint (%): input in the % of sales here. Deal Manager will calculate the threshold of sales the tenant needs to achieve before % of sales rent kicks in.
Custom Breakpoint: If we wish to input in custom breakpoint values on a deal we can do so by clicking the Custom checkbox. When selected we navigate to the unnatural tab. Scrolling all the way to the right within the Rent Schedule box will allow us to enter in the breakpoint and breakpoint % at each rent step.
Once saving the initial proposal entry we will then change the stage to proposal. To do this simply click on the Deal Stage then select Proposal and hit update.