The Letter of Intent to Lease Commercial Space is a crucial preliminary document in United States commercial real estate transactions, typically used before entering into a formal lease agreement. It serves as a roadmap for lease negotiations and demonstrates serious intent from both parties while maintaining flexibility for final terms. This document outlines fundamental aspects such as proposed rental rates, tenure, space details, and basic obligations of both parties. While predominantly non-binding, certain provisions like confidentiality and exclusivity may be specifically made binding. The LOI helps parties agree on key terms before investing in costly legal documentation and due diligence, following US commercial real estate practices and varying state-specific requirements.
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1. Date and Parties: Names and addresses of the prospective landlord and tenant, including their legal business names and contact information
2. Property Description: Detailed description of the commercial space, including address, square footage, and any included common areas or facilities
3. Proposed Lease Terms: Key commercial terms including proposed rent, lease duration, commencement date, and any renewal options
4. Permitted Use: Intended use of the premises and any specific business activities to be conducted
5. Financial Terms: Rent structure, security deposit, utilities, maintenance fees, and other financial obligations
6. Timeline: Proposed schedule for lease negotiation, due diligence period, and target date for lease execution
7. Non-Binding Statement: Clear statement that the LOI is non-binding except for specific provisions (such as confidentiality)
8. Expiration of Offer: Deadline for acceptance of the LOI terms and conditions
1. Exclusivity Period: Used when parties want to ensure exclusive negotiations for a specified period
2. Due Diligence Requirements: Include when specific investigations or reviews are needed before finalizing the lease
3. Confidentiality Provisions: Added when parties wish to keep negotiations and terms confidential
4. Tenant Improvement Allowance: Include when discussing any landlord contributions to space modifications
5. Broker Representation: Required when real estate brokers are involved in the transaction
6. Contingencies: Added when the LOI depends on specific conditions being met
7. Operating Expenses: Include when there's a need to outline specific terms about CAM charges and other operational costs
8. Parking Provisions: Added when specific parking arrangements need to be addressed
1. Floor Plan: Preliminary floor plan or space layout of the proposed lease area
2. Site Plan: Overview of the property showing location of the space within the building/complex
3. Preliminary Space Plan: Basic layout showing proposed tenant improvements or modifications
4. Rent Schedule: Detailed breakdown of proposed rent payments, including any escalations
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Retail
Office Space
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Healthcare
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Financial Services
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Hospitality
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Education
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Food and Beverage
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Relevant Teams
Legal
Real Estate
Finance
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Risk Management
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Relevant Roles
Chief Executive Officer
Chief Financial Officer
Real Estate Director
Facilities Manager
Property Manager
Business Development Manager
Commercial Lease Attorney
Real Estate Broker
Operations Director
Store Manager
Regional Manager
Corporate Counsel
Business Owner
Expansion Manager
Site Selection Manager
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