Skill

Bid Strategy

Bid range methodology, pricing sensitivity, and competitive positioning

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npx claudepluginhub firststreetai/realestate-services-plugins --plugin acquisitions-investments

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This skill uses the workspace's default tool permissions.

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Framework for determining bid pricing in the context of competitive dynamics and return targets.

SKILL.md

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Last CommitApr 2, 2026

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Bid Strategy

Framework for determining bid pricing in the context of competitive dynamics and return targets.

Bid Range Construction

Low Bid (Floor)

Return at fund's maximum acceptable return threshold

Assumes conservative underwriting (higher vacancy, lower rent growth)

Represents "steal" pricing -- unlikely to win but worth trying

Target Bid

Return at fund's target return for this strategy

Uses base-case underwriting assumptions

Represents fair value given the fund's view

Walk-Away (Ceiling)

Return at fund's minimum acceptable threshold

Assumes most optimistic reasonable scenario

Above this price, the deal doesn't pencil under any defensible assumption set

Competitive Positioning Factors

Widely marketed process: Expect aggressive bidding; may need to bid at or above target

Off-market / limited process: More pricing power; bid at or near low end

Broker relationship: Reputation and certainty of close can offset price by 2-5%

Timing: Seller urgency increases negotiating leverage

Deal complexity: Fewer capable buyers = less competition

Financing contingency: Non-contingent bid commands premium (25-50bp cap rate compression)

Sensitivity Variables (ranked by impact)

Exit cap rate (+/- 25-50bp moves value 3-7%)

Market rent growth (+/- 100bp moves IRR 100-200bp)

Vacancy assumption (+/- 200bp moves NOI 2-4%)

Capex / TI/LC (+/- 20% moves IRR 50-100bp)

Interest rate (+/- 100bp moves levered IRR 150-300bp)

Bid Strategy

Framework for determining bid pricing in the context of competitive dynamics and return targets.

Bid Range Construction

Low Bid (Floor)

Return at fund's maximum acceptable return threshold
Assumes conservative underwriting (higher vacancy, lower rent growth)
Represents "steal" pricing -- unlikely to win but worth trying

Target Bid

Return at fund's target return for this strategy
Uses base-case underwriting assumptions
Represents fair value given the fund's view

Walk-Away (Ceiling)

Return at fund's minimum acceptable threshold
Assumes most optimistic reasonable scenario
Above this price, the deal doesn't pencil under any defensible assumption set

Competitive Positioning Factors

Widely marketed process: Expect aggressive bidding; may need to bid at or above target
Off-market / limited process: More pricing power; bid at or near low end
Broker relationship: Reputation and certainty of close can offset price by 2-5%
Timing: Seller urgency increases negotiating leverage
Deal complexity: Fewer capable buyers = less competition
Financing contingency: Non-contingent bid commands premium (25-50bp cap rate compression)

Sensitivity Variables (ranked by impact)

Exit cap rate (+/- 25-50bp moves value 3-7%)
Market rent growth (+/- 100bp moves IRR 100-200bp)
Vacancy assumption (+/- 200bp moves NOI 2-4%)
Capex / TI/LC (+/- 20% moves IRR 50-100bp)
Interest rate (+/- 100bp moves levered IRR 150-300bp)