Letter of Intent Sample for Tenant

LETTER OF INTENT: COMMERCIAL LEASE PROPOSAL

Document Control

• Effective Date: [Date]
• Version: 1.0
• Jurisdiction/Scope: [State/Province/Country] Real Estate Law

LEGAL DISCLAIMER

This Letter of Intent ("LOI") is intended to outline the preliminary business terms for a potential lease agreement between the parties. Except for the "Confidentiality" and "Exclusivity" clauses specifically designated herein, this document is non-binding and does not constitute a legally enforceable obligation to enter into a lease. A binding commitment shall only arise upon the execution of a definitive Commercial Lease Agreement (“Lease”).

1. PARTIES

Landlord: [Full Legal Name of Landlord], located at [Landlord Address]. Tenant: [Full Legal Name of Tenant/Company], located at [Tenant Address].

2. PREMISES

The property is located at [Full Street Address, Suite/Unit Number, City, State, Zip], consisting of approximately [Square Footage] rentable square feet (the "Premises").

3. LEASE TERM

• Term: [Number] years/months.
• Commencement Date: [Proposed Move-in Date].
• Renewal Options: [Number] options to renew for [Number] years each, exercisable with [Number] days’ written notice.

4. RENT & ADDITIONAL COSTS

• Base Rent: $[Amount] per month, subject to [Percentage]% annual escalation.
• Security Deposit: $[Amount], payable upon execution of the Lease.
• Operating Expenses: Tenant shall be responsible for [Pro-rata share / NNN / Gross] of taxes, insurance, and common area maintenance (CAM).

5. USE & IMPROVEMENTS

• Permitted Use: [Specific Business Use].
• Tenant Improvements (TI): Landlord to provide an allowance of $[Amount] for build-outs. Any costs exceeding this allowance shall be borne by the Tenant.

6. EXCLUSIVITY & CONFIDENTIALITY

• Exclusivity: Landlord agrees to withdraw the Premises from the market and negotiate in good faith exclusively with Tenant for a period of [30] days from the Effective Date.
• Confidentiality: Both parties agree to maintain the terms of this LOI in strict confidence, disclosing only to legal counsel, accountants, or essential financial institutions.

7. GOVERNING LAW

This LOI shall be governed by and construed in accordance with the laws of the jurisdiction of [Jurisdiction].

EXECUTION BLOCK

Landlord Signature: __________________________ Date: [Date] Printed Name: [Name] | Title: [Title]

Tenant Signature: __________________________ Date: [Date] Printed Name: [Name] | Title: [Title]

STEP-BY-STEP EXECUTION GUIDE

1. Due Diligence Verification: Before signing, conduct an independent verification of the building's zoning, occupancy permits, and structural integrity to ensure it supports the [Permitted Use] defined in Section 5.
2. Delivery & Counter-Execution: Deliver two original signed copies to the Landlord. Upon the Landlord’s signature, one fully executed original must be returned to the Tenant within 48 hours to validate the "Exclusivity" period.
3. Definitive Agreement Transition: Utilize the terms established in this LOI as the primary exhibit/framework for the drafting of the formal lease. All discrepancies between this LOI and the final Lease must be resolved by legal counsel before signing the formal document.
4. Escrow Coordination: Ensure the Security Deposit is held in a segregated escrow account or equivalent, as specified in the formal lease, to protect liquid assets during the transition phase.