Letter of Intent Sample for Leasing

LETTER OF INTENT (LOI) FOR COMMERCIAL LEASE

DOCUMENT CONTROL

• Effective Date: [Date]
• Version: 1.0
• Jurisdiction: [State/Province]
• Scope: Binding/Non-Binding (Select One)

1. LEGAL DISCLAIMER

NOTICE: This Letter of Intent ("LOI") is intended to outline the preliminary business terms for a potential lease agreement. Except for the sections explicitly identified as "Binding" (Confidentiality, Exclusivity, and Governing Law), this document is a non-binding expression of interest. Neither party shall be legally obligated to enter into a definitive Lease Agreement unless and until a formal, final agreement is negotiated, drafted, and executed by both parties.

2. 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].

3. OPERATIVE TERMS

3.1 Premises: The property located at [Street Address, Suite/Unit Number, City, State, Zip], consisting of approximately [Number] square feet of rentable area.

3.2 Term: The lease term shall be for a period of [Number] years/months, commencing on [Start Date] (the "Commencement Date").

3.3 Base Rent: Tenant shall pay a monthly Base Rent of [Currency Amount] due on the [Day] of each month, subject to an annual escalation of [Percentage]%.

3.4 Security Deposit: Tenant shall provide a security deposit in the amount of [Currency Amount] upon execution of the definitive Lease Agreement.

3.5 Use: The premises shall be used for [Specify Business Activity] and for no other purpose without the prior written consent of the Landlord.

3.6 Tenant Improvements (TI): Landlord shall provide a TI Allowance of [Currency Amount] or complete the following work: [Describe Scope of Improvements].

3.7 Option to Renew: Tenant shall have [Number] options to renew the lease for consecutive terms of [Number] years each, exercisable by providing written notice [Number] days prior to the expiration of the current term.

4. BINDING PROVISIONS

4.1 Confidentiality: Neither party shall disclose the existence or terms of this LOI to any third party, except to its professional advisors, without the prior written consent of the other party.

4.2 Exclusivity: Landlord agrees that for a period of [Number] days from the date of this LOI, it shall not solicit, negotiate, or enter into any agreement with any other party for the leasing of the Premises.

4.3 Governing Law: This LOI shall be governed by and construed in accordance with the laws of the State of [State].

5. SIGNATURES AND ACKNOWLEDGMENT

LANDLORD: Signature: __________________________ Name: [Printed Name] Title: [Title] Date: [Date]

TENANT: Signature: __________________________ Name: [Printed Name] Title: [Title] Date: [Date]

6. EXECUTION AND ENFORCEMENT GUIDE

1. Due Diligence Period: Before signing, ensure the "Exclusivity" period provides sufficient time (typically 15–30 days) to conduct necessary property inspections, zoning verification, and financial analysis.
2. Definitive Agreement Transition: Once the LOI is signed, immediately instruct counsel to draft the "Definitive Lease Agreement" incorporating the terms outlined above. Do not take physical possession or perform capital improvements until the full lease is executed.
3. Formal Execution: Ensure that signatories possess the corporate authority (via Board Resolution or Operating Agreement) to bind their respective entities. Retain a fully executed digital copy in your centralized document management system.