What is an RFP in real estate?
A real estate RFP is a procurement document created to help businesses or government bodies find vendors related to various real estate services including property management services, real estate agency listings, commercial office leases and more. The creation of a real estate RFP, which will benefit you and your business, can be a daunting task when you consider the amount of information that is likely to be included. Finding the right vendor; however, is not impossible and some tools can make the process easier.
What should a real estate RFP include?
There are always going to be requirements of your real estate RFP that aren’t really negotiable. Deal breakers that will help you separate the proverbial wheat from the chaff. The main skeleton of an RFP tends to remain similar across industries, with tweaks and extras based on specific requirements. There is a range of tips and strategies that will help make your RFP more efficient and get you the vendor that you’re looking for.
Let’s look at the sections vital to a successful RFP:
An overview of your current situation, tenant details, information and specifics about the property and lease agreement. Discuss briefly some of your key requirements and what you are hoping to achieve from with this RFP. End with a link to more information about your business.
2. Scope of work
Ideally, you are looking for a vendor who can provide integrated real estate services from start to finish. You will require strategic planning and needs analysis with the following details:
- A project mandate/governance structure
- A business needs review detailing the space, a workplace assessment, and review of standards and staffing
- Strategic options for both the business and the space
As a side note, you will need to develop your assessment criteria. This can be one of the harder aspects of the RFP process. However, the use of procurement software will make this task much less of a headache. By pre-determining answers via drop-down selection and weighted questions, the vendor responses will be easily comparable and measurable.
3. Project Management Services (if required)
Most commercial real estate requires project management. It is safe to assume any vendor who already provides this service will do well across most essential tasks, but you should include them all the same. Consider pre-lease services, project initiation and planning, LEED certification, IT and technical requirements and pricing. You may also include design and procurement elements within the scope of requirements.
What situations may require the RFP process?
As mentioned earlier, the world of real estate is a big one. Once you have simplified the process of RFP creation and deployment, it can be used to attain a range of vendors and services including:
- Property Management Services
- Real Estate Agency Listings
- Non-Smoking Property Management
- Commercial Real Estate Broker
- Commercial Office Real Estate Lease
- Franchise Location Purchasing
- Retail Location Business Planning
- Real Estate Land Development/Property Sales Services
- Real Estate Investment Funding
How can I make the real estate RFP process as simple as possible?
The answer to this is very easy. In fact, software like DirectRFP® can turn the real estate RFP process from a hindrance to a benefit very quickly. DirectRFP® simplifies not only the creation of an RFP but the review process as well. This saves you time and finds the vendor that is best for you.
Making the RFP process easier for you as a buyer is only half the equation. By putting out an RFP that is easy to complete and clear with its requirements means that more qualified vendors will submit their bids, making your selection process more competitive.
The following features of the software assist the review process making it easier to find the right vendor:
- Customised weighting — Edit the rankings of particular responses and see which vendors score higher when different categories are given more importance.
- Measurable responses — Multiple choice answers and direct questions ensure that responses refrain from being too broad or long-winded for easier comparability.
- Instantaneous results analysis and tracking — In-depth analytics and reporting means there is always a clear audit trail. Let the platform do the scoring, saving you time and resources.
- Document upload and share functions — Upload documents to a digital database to edit and share, assign review tasks to different departments and stakeholders within the single platform. Uphold timelines and meet milestones on time.
What are some other benefits of RFP Software?
Your real estate RFPs, while addressing different areas of your business, will start to become repetitive. Use existing questions to build out subsequent RFPs from a library of questions. Save more time as you run more RFPs.
The major benefits during the creation process include:
- Assistance in creating exact and measurable responses
- Complete transparency
- Uploading of existing RFPs including .csv, excel, word etc.
- Internal messaging and delegation to include stakeholders
- 60% reduction in overall completion time
Automated RFP software is a must-have tool to elicit the right responses, and help you find the right vendor for your real estate RFP needs. Contact DirectRFP® today and start saving time and money in your RFP process today.