Commercial Letter of Intent
This letter starts a conversation without making a commitment.
The Basics on the Commercial Letter of Intent.
Finding a space you like, you should consider submitting a letter of intent, even if you are undecided. It will start the process of getting specific details on a potential lease.
If you see a space and are considering it, a letter of intent can express that interest and get you additional details. It is not legally binding and you don’t need to put money on the table. It will also help in comparing spaces, lay the basic requirements of a potential lease, renovation needs and a high level of what you and the landlord will cover. Here are a few things to think about for your Commercial Letter of Intent. It is best to do a search and find some examples as you draft one.
Tenant Options:
What options are you seeking regarding the space, rent, renewal, contracts, rights of refusal or first offer. Get to the details if some of these items are only referring to part of the space.
Details of the Property:
The description of both the larger party and the space for lease. It should include the condition.
Involved Parties:
Include buyer and seller names. Find out if any additional parties are represented.
Maintenance and Operating Expenses and Exclusions:
Request a list of standard expenses and exclusions. Focus on shared costs of the building.
Tenant Improvements
Lean what the tenant improvement allowance is and when it will be paid. Also ask what it can be apd toward.
Costs:
List all known costs and ask for a list of expected costs. From closing to exit. List and learn what you can.
