Sample Letter Of Intent To Lease Commercial Real Estate
Introduction
Are you planning to lease a commercial property? If yes, then you need to write a letter of intent. This letter serves as a formal expression of interest in leasing a commercial property. It outlines the main terms and conditions of the lease agreement. In this article, we are going to provide you with a sample letter of intent to lease commercial real estate.
Salutation
The letter should begin with a formal salutation. Address the landlord or the property manager by name and use their formal title. For instance, "Dear Mr. Smith".
Introduction
In the first paragraph, introduce yourself and your business. Mention the business name, the type of business, and the industry you operate in. Also, state the reason why you are interested in leasing the property.
Property Details
In the next paragraph, provide details about the property. Mention the address, the size, and the type of property. Also, state the proposed lease term and the rental rate.
Lease Term
In this paragraph, specify the proposed lease term. State the start date and the end date of the lease. Also, mention any renewal options or extension clauses.
Rental Rate
State the proposed rental rate per square foot or per month. Also, mention any other charges such as utilities, maintenance, or common area charges.
Security Deposit
Specify the amount of the security deposit. State the method of payment and the conditions for refunding the deposit at the end of the lease term.
Use of Property
State the intended use of the property. Mention the type of business activities that will be conducted on the property. Also, state any restrictions or limitations on the use of the property.
Improvements
If you plan to make any improvements to the property, state them in this paragraph. Mention the type of improvements, the cost, and the timeline for completion. Also, state who will be responsible for the expenses.
Compliance with Laws
State that you will comply with all applicable laws and regulations. Mention any permits or licenses that you will obtain before occupying the property.
Insurance
State that you will maintain adequate insurance coverage during the lease term. Mention the type of insurance and the coverage limits.
Assignment and Subletting
State whether you will have the right to assign or sublet the property. Mention any conditions or restrictions on assignment or subletting.
Default and Remedies
State the consequences of default and the remedies available to the landlord. Mention any grace period or notice requirements before the landlord can terminate the lease.
Confidentiality
State that the letter of intent and any negotiations are confidential. Mention any exceptions such as disclosure required by law.
Binding Effect
State that the letter of intent is not a binding agreement. Mention that a formal lease agreement will be executed after due diligence and negotiation.
Conclusion
In conclusion, a letter of intent to lease commercial real estate is a formal expression of interest in leasing a commercial property. It outlines the main terms and conditions of the lease agreement. Use this sample letter of intent as a guide for writing your own letter. Make sure to seek legal advice before signing any lease agreement.