Letter of Intent Commercial Lease

What is a letter of intent commercial lease?

A letter of intent commercial lease is a formal document used to outline the preliminary terms and conditions under which one person wishes to enter a commercial lease agreement with another person. This document represents a first step in the negotiating process for signing a final commercial lease agreement.

This document includes essential information such as:

• the property’s address and description;
• the duration of the proposed lease;
• the rent amount and payment structure;
• the required security deposit; and
• any renewal or termination terms.

The parties involved in a letter of intent for commercial lease are the sender and the recipient. Both parties could be individuals, businesses, or organizations who are willing to start the negotiation process regarding the commercial lease. The sender can either be a tenant (a person willing to rent the property) or a property owner (a person willing to find a tenant for a property).

The present sample letter of intent to lease commercial real estate is suitable for various types of properties, including:

• warehouses;
• agricultural farms;
• office spaces;
• hospitality or leisure; or
• other types of real estate (e.g., co-working space).

How to draft a commercial lease letter of intent template?

To draft a solid commercial lease letter of intent template, the clauses listed below shall be included in the document:

Sender’s Details

The thing number one every letter of intent to lease commercial property template shall lay out the sender’s details:

• full name;
• address; and
• contact phone and email.

A recipient of this letter needs to understand with whom they have to potentially negotiate the future commercial lease. Besides that, the recipient may need to perform additional due diligence to find out more about the sender prior to signing this letter.

Suggested Terms of the Lease

Every letter of intent to lease commercial property must set out the exact list of terms the sender wishes to include:

• Lease Duration. This clause shall include the start and end date of the commercial lease. If the sender wishes to have an automatic renewal of the lease, the text of a letter needs to include conditions of such a renewal.
• Rental Payments. A letter of intent for lease of commercial property needs to clarify the frequency and amount of rental payments. The sender may suggest weekly, monthly, annual, or other types of payments. If the sender requires an annual increase of payments, the maximum percentage of such an annual increase should be included in the text of a letter as well.
• Security Deposit. Having a security deposit for a commercial lease is requirement number one. Thus, a sample letter has to include the exact amount of the deposit, as well as exactly when it shall be paid.
• Purpose of the Lease. A good commercial lease letter of intent template needs to specify an exact list of purposes for which the commercial property is planned to be used.

Next Steps

The final part of every sample letter of intent to lease commercial property is the inclusion of the next steps. In most of the cases the recipient shall sign the text of this letter and return it back to the sender.

Besides that, the text of a letter may also include contact details of a sender so that the recipient can contact them for further discussion.

Conclusive Remarks

Once a letter of intent for lease of commercial property is ready, the sender shall sign it and date it. Without signing, a document won’t become valid or enforceable. A signed document adds more credibility for your request.

If a sender is an individual, that person shall put their signature at the end of the document. When, however, a sender is a legal entity, in that case a company’s director, head of the legal department, or other authorized person shall sign the letter.

Last but not least is to define the applicable law. This is not the law that shall apply to the future commercial lease, but the law applicable to the present letter of intent. The sender may choose either of the options below:

• the state where the sender is based, registered, or doing their main business;
• the state where the recipient is based or doing their business; or
• the state where the commercial property is located (the most common).

How to customize a letter template at FasterDraft?

To get a fully customized commercial lease letter of intent template, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a letter’s format—PDF or Word.
4. Make a payment.
5. E-sign, download, and instantly use a template’s letter.