Letter of Intent Sample for Lease Space

LETTER OF INTENT FOR COMMERCIAL LEASE AGREEMENT

Document Control:

• Effective Date: [Date]
• Version: 1.0 (Standard Commercial)
• Jurisdiction: [State/Province]

LEGAL DISCLAIMER

This Letter of Intent ("LOI") is intended to outline the preliminary business terms for a potential lease agreement. Except for the sections titled "Confidentiality," "Exclusivity," and "Governing Law," this document is non-binding and does not constitute a legally enforceable contract to lease. No binding agreement shall exist until a formal Lease Agreement is drafted, reviewed by legal counsel, and executed by both parties.

1. PARTIES

• Landlord: [Full Legal Name of Landlord], with a principal address at [Address].
• Tenant: [Full Legal Name of Tenant], with a principal address at [Address].

2. PREMISES

• Description: [Street Address, Suite Number, and Building Name].
• Square Footage: Approximately [Number] rentable square feet.

3. TERM & OPTION

• Term: [Number] years, commencing on [Commencement Date].
• Renewal Options: [Number] options to renew for [Number] years each, exercisable upon [Number] days' written notice.

4. RENT & OPERATING EXPENSES

• Base Rent: [Amount] per month (plus applicable sales/use tax).
• Rent Escalations: [Percentage or Fixed Amount] increase effective on each anniversary of the Commencement Date.
• Operating Expenses: Tenant shall pay [Triple Net/Modified Gross/Gross] costs, including [CAM, Taxes, Insurance].

5. SECURITY DEPOSIT

• Amount: [Amount] payable upon execution of the formal Lease Agreement.

6. USE & IMPROVEMENTS

• Permitted Use: [Detailed description of business operations].
• Tenant Improvements (TI): [Landlord Contribution/Tenant's Work]. Any alterations require Landlord’s prior written consent.

7. CONFIDENTIALITY & EXCLUSIVITY

• Confidentiality: Neither party shall disclose the existence or terms of this LOI to third parties without prior written consent, except to legal/financial advisors.
• Exclusivity: Landlord agrees to cease all negotiations with third parties regarding the Premises for a period of [Number] days (the "Exclusivity Period") to facilitate the negotiation of a definitive Lease Agreement.

8. EXECUTION & ACKNOWLEDGMENT

Landlord: Signature: __________________________ Date: ______________ Printed Name: _______________________ Title: _____________

Tenant: Signature: __________________________ Date: ______________ Printed Name: _______________________ Title: _____________

STEP-BY-STEP EXECUTION GUIDE

1. Due Diligence Verification: Before signing, verify the property's zoning compliance for your intended use and confirm the "Rentable Square Footage" through an independent survey or BOMA measurement if necessary.
2. Negotiation & Drafting: Once this LOI is signed, the Landlord (or their counsel) typically issues the formal Lease Agreement. Review this draft against the terms established in this LOI specifically focusing on Operating Expense caps and Assignment/Subletting clauses.
3. Legal Review: Submit the formal Lease Agreement draft to corporate counsel for review. Do not rely on this LOI as a substitute for the final, comprehensive Lease Agreement, which will contain mandatory provisions regarding liability, indemnification, and casualty loss.
4. Final Execution: Ensure the Lease Agreement is signed by authorized signatories for both corporate entities and that all exhibits (site plans, work letters) are attached prior to the payment of the Security Deposit.