Net lease glossary
Right of First Offer (ROFO)
A tenant's right to make an offer to buy the property before the landlord markets it to others.
A right of first offer requires the landlord, before selling, to give the tenant the chance to make an offer. If the tenant declines or the parties cannot agree, the landlord may sell to a third party, usually only at or above the price the tenant offered or within a stated window. A ROFO is generally less disruptive to a sale process than a ROFR because outside buyers are not competing against a tenant who can match their bid.