Letter of Intent Template for Lease

LETTER OF INTENT FOR COMMERCIAL LEASE AGREEMENT

Document Control:

• Effective Date: [Date]
• Version: 1.0 (Standard Commercial)
• Jurisdiction: [State/Province]
• Status: Non-Binding (except where specified)

1. LEGAL DISCLAIMER & NOTICE

This Letter of Intent (“LOI”) outlines the preliminary terms and conditions under which [Landlord Name] (“Landlord”) and [Tenant Name] (“Tenant”) propose to enter into a formal Lease Agreement. This LOI is intended solely as an expression of interest and, except for the clauses titled “Confidentiality” and “Exclusivity,” shall not constitute a binding legal agreement. No legally binding obligations shall exist until the execution and delivery of a definitive Lease Agreement by both parties.

2. PARTIES & PREMISES

• Landlord: [Full Legal Name], located at [Address].
• Tenant: [Full Legal Name], located at [Address].
• Premises: The property located at [Street Address, Suite Number, City, State, Zip], consisting of approximately [Square Footage] square feet.

3. OPERATIVE TERMS

1. Lease Term: The term shall be [Number] years/months, commencing on [Start Date] and terminating on [End Date].
2. Base Rent: Tenant shall pay a monthly Base Rent of $[Amount] USD, due on the [Day] of each month.
3. Rent Escalation: Rent shall increase by [Percentage]% annually, effective on each anniversary of the Commencement Date.
4. Security Deposit: Tenant shall deposit $[Amount] with Landlord upon execution of the Lease, refundable per terms therein.
5. Operating Expenses (NNN/Gross): Tenant shall be responsible for [Specify: e.g., Pro-rata share of taxes, insurance, and CAM] in addition to Base Rent.
6. Permitted Use: The Premises shall be used exclusively for [Describe Business Use] and no other purpose without prior written consent.
7. Tenant Improvements (TI): Landlord shall provide a TI Allowance of $[Amount]. Any costs exceeding this amount shall be borne by the Tenant.
8. Exclusivity: Landlord agrees that for a period of [Number] days from the Effective Date, they shall not solicit or negotiate with any other party regarding the lease of the Premises.
9. Confidentiality: Both parties agree to maintain the terms of this LOI in strict confidence and shall not disclose its contents to third parties, excluding legal and financial advisors.

4. EXECUTION & ACKNOWLEDGMENT

In witness whereof, the parties have executed this Letter of Intent as of the dates set forth below.

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

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

5. STEP-BY-STEP EXECUTION GUIDE

• Step 1: Due Diligence & Calibration: Complete the fillable bracketed fields with data derived from market analysis and internal budgeting. Ensure the "Permitted Use" clause is broad enough to accommodate future pivots but specific enough to satisfy zoning requirements.
• Step 2: Formal Execution: Both parties should sign the document. While this document is non-binding, the "Exclusivity" and "Confidentiality" clauses should be reviewed by legal counsel to ensure they are drafted as enforceable covenants in your specific jurisdiction.
• Step 3: Conversion to Definitive Agreement: Once the LOI is signed, instruct legal counsel to draft the "Definitive Lease Agreement" incorporating these terms. Use the LOI as the primary exhibit to ensure the final contract strictly adheres to these pre-negotiated parameters.
• Step 4: Enforcement: Ensure the "Exclusivity" period is strictly monitored. If the Landlord breaches the exclusivity clause, seek immediate injunctive relief to prevent the loss of the lease opportunity.