Welcome to my channel and in today’s video, I am going to answer the question "What is a Right Of First Refusal?". ▶️ Visit to know more: https://www.raphaelcollazo.com/ Each week, I answer questions asked by our viewers on topics pertaining to commercial real estate. If you're interested in having your question answered, feel free to email me. ▶️ raphael@grisantigroup.com ▶ With the subject line of "Weekly CRE Question" In this video, I explain what a right of first refusal is in commercial real estate and why it's beneficial to tenants/purchasers to negotiate. A Right Of First Refusal (ROFR) gives you the right to lease/purchase a commercial property prior to another party. Below I've provided examples of each: ✅ Leasing - you approach the owner of a 5,000 SF vacant building and work out a deal to occupy 2,500 SF. You also negotiate a right of first refusal on the adjacent 2,500 SF. One year later, a potential tenant approaches the landlord with an offer to lease the vacant space. The owner must first offer you the space at the terms proposed by the prospective tenant. ✅ Purchasing - You purchase a 20,000 SF industrial building on an acre of land. Along with that, you negotiate a Right Of First Refusal on the adjacent property as the previous owner owns that parcel as well. One year later, a potential buyer approaches the owner with an offer to purchase the adjacent space. The owner must first offer you the property at the terms proposed by the prospective buyer. In both scenarios, if you choose to not exercise your right, the owner can freely lease/sell the property to the interested party. The benefit of this approach is that it affords you the flexibility to expand your business at some point in the future. If you're interested in buying, leasing, or selling commercial real estate, I'd be happy to help! I look forward to helping you reach your real estate goals! If you like the video, please SUBSCRIBE, and don't forget to press the bell 🔔, 👍like, comment and share. Stay safe and Love all. --------------------------------------- ▶️ If you're interested in leasing, buying, and/or selling commercial property in the Louisville metro area, I would love to help! ▶️ Check out my Website: https://www.raphaelcollazo.com/ ▶️ Email me: raphael@grisantigroup.com ▶️ Call/Text me: 502-536-7315 ------------------------------------------ ▶️ FREE REAL ESTATE GUIDES: https://linktr.ee/raphaelcollazocre ------------------------------------------ ▶️ Follow me on: • Meetup: https://www.meetup.com/Commercial-Real-Estate-101/ • Instagram: https://www.instagram.com/recollaz/ • Facebook: https://www.facebook.com/raphaelcrelouisville • LinkedIn: https://www.linkedin.com/in/raphaelcollazo/ --------------------------------------------------- ▶️ Other Videos: • Top 4 thing to consider (retail property): https://www.youtube.com/watch?v=zxbXZiYf8b8 • How to purchase investment property: https://www.youtube.com/watch?v=vroj5Rru49w • Rookie to Real Estate Rockstar: https://www.youtube.com/watch?v=LE6ikpQp-Hw • Finding and Funding Great Deals: https://www.youtube.com/watch?v=oOq9FKROcoE ----------------------------------------------------- ▶️ Commercial Real Estate Investment Analysis: To watch a great video on how to analyze commercial investment deals, check out the link provided here: https://bit.ly/2GwuSXX #commercialproperty #commercialrealestate #commercialdeals #commercialrealestatedeals #RaphaelCollazo #rightoffirstrefusal #rofr #realestatelaw #commercialrealestatelaw #rofrs #rightoffirstrefusalrealestate #rightoffirstrefusalcommercialrealestate #rofrcommercial #rofrcommercialrealestate #rofrterm #rofrdefinition #Louisvillecommercialrealestate #louisvilleky #louisville