A commercial lease letter of intent is a preliminary document that outlines the basic terms and conditions of a lease agreement for commercial property. It establishes rental rates, lease duration, and responsibilities. This letter serves as a non-binding agreement clarifying the expectations of both the tenant and landlord before the formal contract is drafted.
Why Use
- Facilitates Negotiations: Having a clear starting point allows for more focused discussions before committing to a binding commercial lease agreement.
- Establishes Serious Intent: A signed letter highlights that the tenant is seriously interested in leasing the property, minimizing the risk of backing out after negotiations.
- Improves Efficiency: Landlords can prioritize serious applicants, saving time and resources for those who may not be interested.
Key Components of a Commercial Lease Letter of Intent
This negotiation tool includes the following essential elements:
- Contact Information: Names, addresses, and contact details for both the tenant and landlord.
- Intent to Lease: A clear statement confirming the desire to enter into a formal commercial lease agreement.
- Description of the Premises: A detailed description of the commercial property, including the address and specific areas to be leased.
- Lease Term: The duration of the tenancy, whether fixed-term (e.g., 3 years) or month-to-month.
- Monthly Rent: The agreed-upon monthly rent amount and due date, and any additional costs such as utilities or maintenance fees.
- Operating Expenses: Additional costs like property taxes, common area maintenance (CAM) fees, and utilities, and who is responsible for them.
- Security Deposit: The amount the tenant will pay upfront to cover potential damages and conditions under which the deposit will be held and returned.
- Optional Inclusions: Additional terms like tenant improvement allowances, parking arrangements, signage rights, and subletting restrictions.
- Signatures: Lines for both the tenant and the landlord to sign on, along with dates.
Commercial Lease Letter of Intent Sample
You can download a commercial lease letter of intent template below in PDF or Word.
