Commercial Leases: Letter of Intent
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The letter of intent is usually the first step in commercial lease negotiations.
Oftentimes the first step towards creating a commercial lease agreement is a document called the "letter of intent". Once the tenant and landlord have agreed upon the most basic terms of the commercial lease, have come to some basic mutual understanding, and both are ready to proceed with a commercial tenancy one of two things will happen:
- Commonly, the landlord will offer up an intial draft of the lease agreement for the perspective tenant to go over.
- Alternatively, either party may write up a letter of intent which basically states that the tenant (or landlord if he or she drafts the document) is serious about committing to a lease and ready to move forward.
This section will cover in detail what the purpose of the letter of intent is, how to prepare a letter of intent and how to respond to one.