Letter of Intent Sample for Warehouse Rental

LETTER OF INTENT: INDUSTRIAL WAREHOUSE LEASE AGREEMENT

Document Control

• Effective Date: [Date]
• Version: 1.0
• Jurisdiction: [State/Province/Country]
• Status: Non-Binding (Except as expressly stated herein)

LEGAL DISCLAIMER

This document constitutes a non-binding expression of interest and intent between the parties. It is intended to serve as a preliminary outline of terms for a definitive Lease Agreement. No binding legal obligations (save for the sections on Confidentiality and Exclusivity) shall arise until the execution of a formal, written Lease Agreement by both parties. This template is provided for informational purposes and should be reviewed by licensed legal counsel to ensure compliance with local property laws.

I. PARTIES

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

II. PREMISES

The property subject to this intent is located at [Full Street Address, City, State, Zip Code], comprising approximately [Total Square Footage] rentable square feet (the “Premises”), including [specify if office space/loading docks/mezzanine included].

III. LEASE TERMS

1. Term: An initial term of [Number] years/months, commencing on [Commencement Date].
2. Rent: Base Rent shall be [$ Amount] per month, payable in advance on the first day of each month.
3. Rent Escalation: Rent shall increase by [Percentage]% annually, effective on the anniversary of the Commencement Date.
4. Security Deposit: A sum of [$ Amount] shall be deposited upon execution of the Lease Agreement, refundable subject to the terms therein.
5. Triple Net (NNN) / Gross: The Lease shall be structured as a [Triple Net / Modified Gross / Gross] lease. Tenant shall be responsible for [List utilities, taxes, insurance, and CAM charges].
6. Use: The Premises shall be used exclusively for [Specific Business Activity, e.g., warehousing, light assembly, distribution].

IV. OPERATIONAL PROVISIONS

1. Tenant Improvements (TI): Landlord shall provide a TI Allowance of [$ Amount] to be applied toward improvements as agreed upon in a work letter.
2. Renewal Option: Tenant shall have the right to renew the lease for [Number] additional terms of [Number] years each, with notice provided [Number] days prior to expiration.
3. Maintenance: Landlord is responsible for structural integrity (roof, foundation, exterior walls); Tenant is responsible for HVAC, interior maintenance, and general upkeep.

V. EXCLUSIVITY AND CONFIDENTIALITY

1. Exclusivity: Landlord agrees to cease all lease negotiations with third parties for a period of [Number] days from the Effective Date to allow Tenant to conduct due diligence and finalize the Lease Agreement.
2. Confidentiality: Both parties agree to maintain the terms of this LOI in strict confidence and shall not disclose the contents to any third party (excluding professional advisors) without prior written consent.

VI. SIGNATURES AND ACKNOWLEDGMENT

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

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

VII. STEP-BY-STEP EXECUTION GUIDE

• Due Diligence Review: Before signing, ensure the Tenant has verified the zoning requirements for their specific operational activities and that the Landlord has provided current disclosures regarding the building's structural and environmental status.
• Drafting the Formal Lease: Upon signing this LOI, instruct legal counsel to use this document as the primary "term sheet" to draft the definitive Lease Agreement. Reference this LOI's Effective Date in the Lease preamble.
• Execution Protocol: Ensure all signature blocks are signed by an authorized signatory with the legal capacity to bind their respective entity. Exchange fully executed digital or physical copies immediately to commence the exclusivity period.
• Verification of Authority: If acting on behalf of a corporation or LLC, attach a Corporate Resolution or Operating Agreement excerpt confirming the signatory's authority to enter into real estate obligations.