Letter of Intent for Commercial Lease Template

LETTER OF INTENT FOR COMMERCIAL LEASE TEMPLATE FAQ

What is a Letter of Intent for Commercial Lease?

A Letter of Intent for Commercial Lease (often called a “LOI”) is a document where a landlord and prospective tenant outline the main business terms for a proposed lease — such as premises, rent, term, use, and key responsibilities — before investing time and money in drafting a full commercial lease agreement.

Is a commercial lease Letter of Intent legally binding?

Usually, the core business terms in a commercial lease LOI (like rent, term, and use) are stated as non-binding, while certain provisions — such as confidentiality or a short exclusivity period — may be intended to be binding. Whether a specific LOI is binding depends on the wording and applicable law, so the document should clearly state which sections are binding and which are not.

When should you use a Letter of Intent for Commercial Lease?

Use this LOI when a landlord and tenant have agreed in principle on the basic terms for leasing commercial space (office, retail, industrial, or mixed-use) and want a written summary before drafting a full lease, ordering plans, or starting detailed negotiations. It helps confirm expectations early and reduces misunderstandings.

What should a Commercial Lease LOI include?

A clear LOI normally identifies the parties, describes the premises (suite, building, and approximate size), sets out the lease term and any renewal options, summarizes base rent and additional rent (such as operating expenses or NNN charges), describes the permitted use, security deposit, basic build-out or improvements, and timing for occupancy, plus binding vs. non-binding provisions.

Does this LOI replace a commercial lease agreement?

No. This LOI is usually only a preliminary outline. The binding legal rights and obligations of the landlord and tenant — default remedies, detailed maintenance responsibilities, insurance requirements, assignment and subletting rules, and many other points — are set out later in a formal commercial lease agreement.

Can AI Lawyer help me customize this Commercial Lease LOI template?

Yes. AI Lawyer can help you adjust this Commercial Lease LOI template for your deal by tailoring rent, term, operating expense structure (gross, net, or triple-net), tenant improvements, options, and binding language, while keeping the document clear and consistent. You still choose the final terms and remain responsible for legal review and signatures.