Right of First Offer (ROFO)

What it means

ROFOs are lighter than ROFRs — the holder gets a first look, but the owner can sell to third parties if the ROFO holder declines (typically at a price not below what the owner offered the ROFO holder). ROFOs affect marketability less than ROFRs.

Common in long-term anchor tenant leases, master lease arrangements, and some JV agreements. Landlords selling property with ROFOs must carefully document the offer process to avoid disputes.