Letter of Intent for Leasing Commercial Property

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Letter of Intent for Leasing Commercial Property Powered By Docstoc
					This Letter of Intent is used by a landlord to inform a potential tenant of the landlord's
intent to enter into a commercial lease agreement. The non-binding letter sets forth the
proposed terms and conditions of the lease including the rent payments, permitted uses
of the premises, and the security deposit. It also includes a proposal expiration date
after which the proposal is no longer valid. This document provides a template for
drafting a letter of intent and may be customized to fit the specific needs of the parties.
This should be used by landlords when negotiating to lease commercial property.
                                  [LETTERHEAD OF WRITER]

                                   LETTER OF INTENT

For Leasing Commercial Premises
__________________ [DATE]

[NAME OF ADDRESSEE]

[ADDRESS OF ADDRESSEE]

To whom it may concern:

Re: Lease of __________________________ [DESCRIPTION OF COMMERCIAL
PREMISES] (hereinafter the “Premises”)

by    __________________________________________               [NAME       OF     LANDLORD]
(hereinafter “Landlord”)

to __________________________________________ [NAME OF TENANT] (hereinafter
“Tenant”)

The purpose of this letter sets forth the intentions of Landlord and Tenant with respect to the
above mentioned lease by Landlord to Tenant of the Premises (as herein defined) and to record
the agreement of Landlord and Tenant as to certain matters related to that proposed lease.

1. PREMISES: The premises shall contain approximately __________ [AMOUNT IN
WORDS] (___ [AMOUNT IN NUMERALS]) rentable square feet of space located in
_______________________ [NAME OF DEVELOPMENT] which is more particularly
described known as ______________________________ [ADDRESS OF PREMISES] in
Schedule “A” hereto.

2. USE:       The     Premises       shall     be      used     exclusively     and     only    as
______________________________________ [DESCRIPTION OF THE USE TO WHICH
THE PREMISES WILL BE PUT]. Tenant agrees that Tenant, at its sole cost and expense, will
be responsible to ensure that all applicable laws, including fire and building codes and municipal
land use and zoning bylaws are complied with, all permits and licenses are obtained in
connection with the conduct of Tenant’s business.

3. TERM: The term shall commence on the __________ day of __________, and expire on the
__________ day of __________, _____, subject to early termination as set out in the Lease (the
“Term”).

4. BASIC RENT: Basic rent shall be payable monthly, in advance, as follows:



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______________________________________________________________________________
________________________________________________________________________
[DESCRIPTION]

5. TENANT IMPROVEMENTS: Landlord shall construct the improvements pursuant to the
attached space plan prepared by _________________________________ [NAME]. All
improvements to the Premises shall be constructed using building standard materials.

6. RIGHT TO TERMINATE: Tenant shall have a one (1) time right to terminate the lease at
the ____[ORDINAL] anniversary of the lease term. Tenant shall provide Landlord no less than
__________ [AMOUNT IN WORDS] (___ [AMOUNT IN NUMERALS]) months prior written
notice and shall pay Landlord a termination fee equal to the next __________ [AMOUNT IN
WORDS] (___ [AMOUNT IN NUMERALS]) month’s rent plus the unamortized tenant
improvements with annual interest at an annual rate of __________ [AMOUNT IN WORDS]
percent (__% [AMOUNT IN NUMERALS] The termination fee shall be paid at the time notice
is provided to Landlord.

7. OPERATING EXPENSES: The operating expense stop shall be established by using
__________ [YEAR] as the base year. If, during the Term, Tenant’s proportionate share of
taxes and operating expenses for the building exceeds the amount of operating expenses and
taxes for ,__________ [YEAR]. Tenant shall be responsible for such excess. Operating
expenses will be calculated as : _______________________________ [INSERT
CALCULATION]

8. SECURITY DEPOSIT: As a security deposit, Tenant shall pay Landlord a total sum of
__________ [AMOUNT IN WORDS] dollars ($_________ [AMOUNT IN NUMERALS]) at
the time of executing the commercial lease for the Premises.

9. RENEWAL OPTION: Tenant shall have the right to extend the lease for a period of five
(5) years at __________ [AMOUNT IN WORDS] percent (__% [AMOUNT IN NUMERALS]
of Fair Market Value (FMV). Tenant shall provide notice __________ [AMOUNT IN WORDS]
(___ [AMOUNT IN NUMERALS]) months before the expiration of the lease.

10. RIGHT OF FIRST OFFER: Tenant shall have the Right of First Offer on any neighboring
spaces throughout the term of the lease.

11. PARKING: Tenant shall be entitled to ____________________ [DESCRIPTION OF
PARKING ARRANGEMENTS].

12. ACCESS:     Tenant shall have access to the Building 24 hours per day, 7 days per week.

13. PROPOSAL EXPIRATION:             This proposal is valid until the __________ day of
__________, _____.

14. Special Conditions:



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[INCLUDE OTHER CONDITIONS OR PROPOSAL SUCH AS SIGNAGE ETC.)]

This letter does not and is not intended to impose any binding obligations on either, nor an
agreement by any party to enter into a binding agreement. Neither party may claim any legal
rights against the other by reason of the signing of this letter or by taking any action in reliance
thereon. Each party hereto fully understands that no party shall have any legal obligations to the
other, or with respect to the proposed transaction, unless and until all of the terms and conditions
of the proposed transaction have been negotiated, agreed to by all parties and set forth in a
definitive agreement which has been signed and delivered by all parties. The only legal
obligations, which any party shall have, shall be those contained in such signed and delivered
definitive agreement referred to above.



Sincerely,

__________________________




© Copyright 2013 Docstoc Inc.                                                           4

				
DOCUMENT INFO
Description: This Letter of Intent is used by a landlord to inform a potential tenant of the landlord's intent to enter into a commercial lease agreement. The non-binding letter sets forth the proposed terms and conditions of the lease including the rent payments, permitted uses of the premises, and the security deposit. It also includes a proposal expiration date after which the proposal is no longer valid. This document provides a template for drafting a letter of intent and may be customized to fit the specific needs of the parties. This should be used by landlords when negotiating to lease commercial property.
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