A Letter of Intent (LOI) to lease commercial property is a crucial document that outlines the preliminary terms of a potential lease agreement between a landlord and a tenant. It’s not legally binding (with a few exceptions), but it demonstrates serious interest and sets the stage for more detailed negotiations. A well-crafted LOI can save time and money by ensuring both parties are on the same page regarding key lease terms before legal documents are drafted.
This guide provides 13 sample letters of intent for leasing commercial property, covering various scenarios and highlighting essential clauses. These samples are designed to serve as a starting point; you should always consult with legal counsel to tailor the LOI to your specific circumstances and local laws. Remember to adapt the samples to reflect your unique needs and goals.
The following samples cover a range of situations, including retail spaces, office buildings, and industrial properties. Each sample highlights different aspects of a commercial lease agreement, such as rent, lease term, options to renew, and tenant improvements. Understanding these key terms is vital for crafting an effective LOI that protects your interests.
Before diving into the samples, it’s important to understand the key elements of a commercial lease LOI. These include: Identification of parties (landlord and tenant), property description, proposed use of the property, lease term, rental rate (including escalations), security deposit, permitted use, exclusive use (if any), option to renew, responsibility for repairs and maintenance, tenant improvements, and confidentiality.
Sample Letters of Intent to Lease Commercial Property
Sample 1: Standard Office Space LOI
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Office Space at [Property Address]
Dear [Landlord’s Name],
This letter constitutes our intent to lease approximately [Square Footage] square feet of office space at the above-referenced property, subject to the execution of a mutually acceptable lease agreement.
The proposed terms are as follows:
- Premises: [Specific Suite Number or Description]
- Lease Term: [Number] years
- Base Rent: $[Amount] per square foot per year
- Security Deposit: $[Amount]
- Permitted Use: General office use
- Option to Renew: [Number] options of [Number] years each
- Tenant Improvements: $[Amount] allowance
This Letter of Intent is non-binding, except for the confidentiality clause. We look forward to discussing these terms further and executing a lease agreement.
Sincerely,
[Your Name]
[Your Title]
Sample 2: Retail Space LOI with Exclusive Use Clause
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Retail Space at [Property Address]
Dear [Landlord’s Name],
This letter expresses our strong interest in leasing approximately [Square Footage] square feet of retail space at the aforementioned property, contingent upon the execution of a mutually agreeable lease agreement.
Key terms include:
- Premises: [Specific Suite Number or Description]
- Lease Term: [Number] years with [Number] renewal options
- Base Rent: $[Amount] per square foot per year, escalating by [Percentage]% annually
- Security Deposit: Equivalent to [Number] months’ rent
- Permitted Use: Retail sales of [Specific Products/Services]
- Exclusive Use: Landlord agrees not to lease space to any other tenant selling similar products/services within the building/shopping center.
- Tenant Improvements: To be negotiated
Please note that this letter is not a binding agreement, with the exception of the confidentiality provision. We are eager to move forward with discussions.
Best regards,
[Your Name]
[Your Title]
Sample 3: Industrial Property LOI
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Industrial Space at [Property Address]
Dear [Landlord’s Name],
We are writing to express our interest in leasing approximately [Square Footage] square feet of industrial space at the address listed above, contingent on the execution of a formal lease agreement.
Our proposed terms are as follows:
- Premises: [Specific Warehouse/Bay Number or Description]
- Lease Term: [Number] years
- Base Rent: $[Amount] per square foot per year, NNN (Triple Net)
- Security Deposit: $[Amount]
- Permitted Use: Warehousing and distribution of [Specific Goods]
- Loading Docks: Access to [Number] loading docks
- Tenant Improvements: Discussed separately
This Letter of Intent is not binding, with the exception of the confidentiality agreement. We are looking forward to a favorable reply.
Sincerely,
[Your Name]
[Your Title]
Sample 4: Mixed Use Property LOI
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Mixed Use Space at [Property Address]
Dear [Landlord’s Name],
This letter constitutes our interest to lease [Square Footage] square feet of mixed-use space at the property previously mentioned, subject to the execution of a formal lease agreement.
Our proposed terms are as follows:
- Premises: [Specific Area]
- Lease Term: [Number] years
- Base Rent: $[Amount] per square foot per year
- Security Deposit: $[Amount]
- Permitted Use: [Specific Use Example: “Restaurant with outdoor seating”]
- Option to Renew: [Option Years] year renewal option
- Tenant Improvements: Negotiable based on final design
This Letter of Intent is non-binding, excluding the provision concerning confidentiality. We would enjoy speaking to you more regarding this proposal.
Sincerely,
[Your Name]
[Your Title]
Sample 5: Short Term Lease LOI
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Short Term Space at [Property Address]
Dear [Landlord’s Name],
We are writing to express our interest in leasing approximately [Square Footage] square feet of commercial space at the property noted above, contingent upon the execution of a formal lease agreement.
Our proposed terms are as follows:
- Premises: [Area Description]
- Lease Term: [Number] months
- Base Rent: $[Amount] per month
- Security Deposit: $[Amount]
- Permitted Use: [Example: “Pop-up Retail”]
- Option to Extend: [Number] Month Extension Option
This Letter of Intent is non-binding, with the exception of the confidentiality agreement. We are looking forward to hearing back from you.
Sincerely,
[Your Name]
[Your Title]
Sample 6: Medical Office Space LOI
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Medical Office Space at [Property Address]
Dear [Landlord’s Name],
This letter constitutes our intention to lease medical office space at the property specified above, subject to a completed formal lease agreement.
Our proposed terms are as follows:
- Premises: [Area Description]
- Lease Term: [Number] years
- Base Rent: $[Amount] per year
- Security Deposit: $[Amount]
- Permitted Use: [Medical Services]
- Compliance: Landlord to ensure space is compliant with medical regulations
This Letter of Intent is non-binding, excluding the provision concerning confidentiality. We would appreciate the opportunity to speak more in depth about this proposal.
Sincerely,
[Your Name]
[Your Title]
Sample 7: Restaurant Space LOI
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Restaurant Space at [Property Address]
Dear [Landlord’s Name],
This letter constitutes our interest to lease a restaurant at the property specified above, subject to a completed formal lease agreement.
Our proposed terms are as follows:
- Premises: [Area Description]
- Lease Term: [Number] years
- Base Rent: $[Amount] per year
- Security Deposit: $[Amount]
- Permitted Use: [Restaurant Type]
- Outdoor Space: Right to use outdoor seating area
This Letter of Intent is non-binding, excluding the provision concerning confidentiality. We would appreciate the opportunity to speak more in depth about this proposal.
Sincerely,
[Your Name]
[Your Title]
Sample 8: Negotiation of Existing Lease LOI
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Modification at [Property Address]
Dear [Landlord’s Name],
This letter expresses our interest to modify the lease agreement for the property mentioned, which expires [Expiration Date], subject to the execution of a mutually agreeable lease modification agreement.
Key terms include:
- Premises: [Description]
- Current Lease Term: Lease expires [Expiration Date]
- Proposed New Term: [Number] years
- Modified Base Rent: $[Amount] per square foot per year, escalating by [Percentage]% annually
Please note that this letter is not a binding agreement, with the exception of the confidentiality provision. We are eager to move forward with discussions.
Best regards,
[Your Name]
[Your Title]
Sample 9: Co-Working Space LOI
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Space in a Co-Working Environment at [Property Address]
Dear [Landlord’s Name],
This letter constitues our intention to lease a space at the property specified above, subject to a completed formal lease agreement.
Our proposed terms are as follows:
- Premises: [Description]
- Lease Term: [Number] years
- Base Rent: $[Amount] per month
- Security Deposit: $[Amount]
- Permitted Use: [Business Type]
- Access to Amenities: [Co-Working Amenities]
This Letter of Intent is non-binding, excluding the provision concerning confidentiality. We look forward to hearing back from you.
Sincerely,
[Your Name]
[Your Title]
Sample 10: Startup Company LOI
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Commercial Property for Start Up at [Property Address]
Dear [Landlord’s Name],
This letter constitutes our intention to lease property space at the property specified above, subject to a completed formal lease agreement.
Our proposed terms are as follows:
- Premises: [Area Description]
- Lease Term: [Number] years
- Base Rent: $[Amount] per year, with annual escalation
- Security Deposit: $[Amount]
- Permitted Use: [Business Type]
- Future Expansion: Option to expand on additional space
This Letter of Intent is non-binding, excluding the provision concerning confidentiality. We would appreciate the opportunity to speak more about this proposal.
Sincerely,
[Your Name]
[Your Title]
Sample 11: Salon LOI
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Salon Space at [Property Address]
Dear [Landlord’s Name],
This letter constitutes our interest to lease a salon at the property specified above, subject to a completed formal lease agreement.
Our proposed terms are as follows:
- Premises: [Area Description]
- Lease Term: [Number] years
- Base Rent: $[Amount] per year
- Security Deposit: $[Amount]
- Permitted Use: [Salon Services]
- Equipment: To negotiate installation of equipment
This Letter of Intent is non-binding, excluding the provision concerning confidentiality. We would appreciate the opportunity to speak more in depth about this proposal.
Sincerely,
[Your Name]
[Your Title]
Sample 12: Gym Space LOI
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Gym Space at [Property Address]
Dear [Landlord’s Name],
This letter constitutes our interest to lease a gym at the property specified above, subject to a completed formal lease agreement.
Our proposed terms are as follows:
- Premises: [Area Description]
- Lease Term: [Number] years
- Base Rent: $[Amount] per year
- Security Deposit: $[Amount]
- Permitted Use: [Gym Services]
- Parking: Access to additional parking spaces
This Letter of Intent is non-binding, excluding the provision concerning confidentiality. We would appreciate the opportunity to speak more in depth about this proposal.
Sincerely,
[Your Name]
[Your Title]
Sample 13: Restaurant Bar LOI
[Your Company Letterhead]
[Date]
[Landlord’s Name]
[Landlord’s Address]
RE: Letter of Intent to Lease Bar/Restaurant Space at [Property Address]
Dear [Landlord’s Name],
This letter constitutes our interest to lease a bar/restaurant at the property specified above, subject to a completed formal lease agreement.
Our proposed terms are as follows:
- Premises: [Area Description]
- Lease Term: [Number] years
- Base Rent: $[Amount] per year
- Security Deposit: $[Amount]
- Permitted Use: [Bar/Restaurant Services]
- Outdoor Space: Access to outdoor seating area
This Letter of Intent is non-binding, excluding the provision concerning confidentiality. We would appreciate the opportunity to speak more in depth about this proposal.
Sincerely,
[Your Name]
[Your Title]
Conclusion
Crafting a robust Letter of Intent is a vital initial step in securing commercial property. These samples provide a strong foundation but always prioritize legal counsel to tailor an LOI to your specific needs and ensure compliance with local laws. Carefully considering each clause and negotiating effectively will help you achieve a lease agreement that aligns with your business goals. Remember, a well-drafted LOI paves the way for a smooth and successful leasing process.