A Letter of Intent to Lease Commercial Space is commonly used in German commercial real estate transactions as a preliminary step before entering into a formal lease agreement. It is typically initiated when a prospective tenant has identified suitable commercial premises and wishes to formally express their interest while establishing the basic framework for negotiations. The document, governed by German law including the B眉rgerliches Gesetzbuch (BGB), outlines key commercial terms such as proposed rent, lease duration, and property specifications. While predominantly non-binding, it may contain certain binding provisions regarding exclusivity and confidentiality. This document helps parties establish clear expectations and demonstrates serious intent to proceed with lease negotiations, while maintaining flexibility for final terms. It's particularly valuable in complex commercial leasing situations where detailed due diligence and negotiation periods are necessary.
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1. Date and Parties: Identification of the prospective landlord and tenant, including full legal names, addresses, and registration details for companies
2. Property Description: Detailed description of the commercial space, including address, floor, size in square meters, and any included facilities
3. Intended Use: Statement of the intended business use of the premises
4. Key Commercial Terms: Primary lease terms including proposed rent, service charges, lease duration, and anticipated commencement date
5. Due Diligence Period: Timeframe for conducting necessary investigations and reviews of the property
6. Exclusivity Period: Period during which the landlord agrees not to negotiate with other potential tenants
7. Next Steps: Timeline and process for negotiating and executing the final lease agreement
8. Non-Binding Nature: Clear statement that the LOI is generally non-binding except for specified clauses
9. Signatures: Execution block for both parties
1. Confidentiality: Binding provisions regarding the confidential treatment of negotiations and shared information
2. Deposit Terms: If applicable, proposed terms for security deposit or bank guarantee
3. Broker Confirmation: If a broker is involved, confirmation of broker representation and fee arrangements
4. Break Options: Any proposed early termination rights for either party
5. Condition of Premises: Any specific requirements for the condition of the premises or proposed tenant improvements
6. Cost Allocation: Proposed allocation of costs for lease preparation and registration
7. Governing Law Statement: While German law would apply by default, explicit confirmation if desired
1. Floor Plan: Preliminary floor plan or layout of the commercial space
2. Photos: Current photographs of the premises if available
3. Initial Space Plan: Preliminary layout of tenant's proposed use and any modifications
4. Timeline: Detailed schedule of key dates and deadlines for negotiation and execution of final lease
5. Term Sheet: Summary of key commercial terms in table format for easy reference
Relevant legal definitions
Clauses
Relevant Industries
Retail
Office Space
Manufacturing
Logistics and Warehousing
Healthcare
Hospitality
Technology
Financial Services
Professional Services
Education
Entertainment and Recreation
Food and Beverage
Research and Development
Relevant Teams
Legal
Real Estate
Facilities Management
Finance
Operations
Business Development
Corporate Services
Risk Management
Procurement
Strategy
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
Real Estate Manager
Facilities Manager
Property Manager
Legal Counsel
Commercial Director
Business Development Manager
Operations Manager
Expansion Manager
Real Estate Director
Corporate Services Manager
Location Planning Manager
Site Selection Specialist
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