Fillable Form Letter of Intent to Lease Commercial Property

What is a Letter of Intent to Lease Commercial Property?

A Letter of Intent to Lease Commercial Property is a formal letter that contains a summary of the leasing terms that were verbally discussed beforehand by the landlord and the potential tenant. It also serves as the primary document or basis for the official lease contract. This letter of intent is usually prepared by the landlord or the tenant’s broker.

The Letter of Intent to Lease Commercial Property may include the following information negotiated by a tenant and a landlord:

• Monthly rental amount
• Length of time of the lease (Both initial and renewal terms)
• Additional rent rates
• Premises
• Permitted use of the premises
• Lease renewal options
• Other business terms and conditions

How to write a Letter of Intent to Lease Commercial Property?

For your convenience, PDFRun has a comprehensive template of a Letter of Intent to Lease Commercial Property that you can use. It should be filled out with the following information:

Sender’s Name

Enter the sender’s full legal name.

Address

Enter the sender’s complete address.

City, State, and ZIP

Enter the city, state, and ZIP code of the sender’s current address.

Effective Date

Enter the date when the sender is writing this letter.

Recipient’s Name

Enter the name of the recipient.

Address

Enter the complete address of the recipient.

City, State, and ZIP

Enter the city, state, and ZIP code of the recipient’s address.

I. The Lessee

Enter the full legal name of the potential tenant.

• The Lessor

Enter the full legal name of the landlord.

II. Address of the Premises

Enter the complete address of the commercial property that will be rented out.

Additional Description

Enter specific details about the commercial property.

III. Lease Term

Mark the appropriate box to determine the period of the lease term. You may select:

• Year(s)
• Month(s)

After choosing the period, enter the specified number of years or months.

Enter the commencement day of the lease in the following format: Day/Month/Year.

Enter the expiry date of the lease in the following format: Day/Month/Year.

IV. Use of Leased Premises

Enter what kind of business or operation does the potential tenant intends to run in the commercial space.

V. Base Rent

Enter the amount of base rent in dollars.

Enter the date of payment for each month.

VI. Expenses

Enter a list of the required monthly expenses and their corresponding amounts to be paid by the tenant.

Enter a list of the required monthly expenses and their corresponding amounts to be paid by the landlord.

VII. Security Deposit

Enter the amount of security deposit in dollars.

VIII. Lease Renewal

Mark the appropriate box to determine the statement that best suits the negotiation of the landlord and the tenant in terms of the lease renewal. You may select:

• Lessee has the right to renew the lease a total of (No.) renewal period(s) which may be exercised by giving written notice to the Lessor no less than (No.) days prior to the expiration of the lease or renewal period.
• Lessee may not renew the lease.

If you choose the first statement, enter the number of renewal periods and the number of days.

IX. Rent Increase

Mark the appropriate box to determine the statement that best suits the negotiation of the landlord and the tenant in terms of the rent increase upon lease renewal. You may select:

• Increase by (No.) Percent
• Increase by (No.) Dollars
• Increase as calculated by multiplying the Base Rent by the annual change in the Consumer Price Index (CPI) published by the Bureau of Labor Statistics in the most recent publication to the option period start date.
• Not increase.

If you choose the first statement, enter the percent of increase rate.

If you choose the second statement, enter the amount of increase rate in dollars.

X. Subletting

This section contains the condition of the lessor about subletting the property. The lessee may only sublet the premises after obtaining written consent from the lessor.

XI. Late Rent

Enter the length of the allowed extension for the payment of a monthly rental fee.

Mark the appropriate box to determine the type of penalty for late rent. You may select:

• A late fee of (No.) Dollars per day until the overdue amount is paid.
• An interest rate of (No.) percent per annum on a daily basis until the overdue amount is paid.

Enter the late fee in dollars or the percent of interest rate.

XII. Binding Effect

Mark the appropriate box to determine the binding effect of this letter of intent. You may select:

• Binding – Therefore, the parties acknowledge that remedies at law will be inadequate for any breach of this Letter of Intent and consequently agree that this Letter of Intent shall be enforceable by specific performance. The remedy of specific performance shall be cumulative of all the rights at law or in equity of the parties under this Letter of Intent.
• Non-binding – Therefore, the parties acknowledge that this Letter of Intent is not enforceable by any Party. The terms outlined herein are solely for the purpose of reaching a later agreement in the future, of which the Lessee and Lessor are not bound.

XIII. Additional Provisions

Enter a list of the additional provisions.

• Governing Law

Enter the name of the state where the property is located.

Lessee’s Signature

Affix the signature of the tenant.

Date

Enter the date when the tenant signed this letter.

Print Name

Enter the tenant’s full legal name in capital letters.

Lessor’s Signature

Affix the signature of the landlord.

Date

Enter the date when the landlord signed this letter.

Print Name

Enter the landlord’s full legal name in capital letters.

What are the benefits of a Letter of Intent to Lease Commercial Property?

• It makes the overall lease negotiation faster and smoother.
• It gives an overview of the initial terms of the lease.
• It gives the landlord or tenant the chance to renegotiate before drafting the official lease contract.
• It establishes transparency in dealing with any issues about the commercial property.
• It consolidates the important terms of the commercial property leasing deal into a written document.
• It shows the tenant’s seriousness in renting the commercial property.
• The tenant will know the initial requirements that he or she needs to comply with upon renting the commercial space.