Finding the right commercial space for your business can be a major step forward. Before signing a full lease agreement, most landlords and tenants first exchange a letter of intent. This document outlines the basic terms both parties agree to pursue in the final lease.
Want to make sure your letter of intent hits all the right points? The samples below show exactly how to structure this important document for different situations. Each one can be adjusted to fit your specific needs.
Sample Letters of Intent for Commercial Lease
These fifteen sample letters will guide you through creating your own letter of intent for a commercial lease.
1. Basic Letter of Intent for Retail Space
[Date]
[Landlord’s Name]
[Landlord’s Address]
[City, State ZIP]
Subject: Letter of Intent for Commercial Lease at [Property Address]
Dear Mr./Ms. [Landlord’s Last Name],
This letter expresses my interest in leasing the retail space located at [full property address] for [your business name].
After viewing the property on [date of viewing], I would like to move forward with the following proposed terms:
Tenant: [Your Name/Business Name]
Premises: Approximately [square footage] square feet at [property address]
Use: The space will be used for [describe intended business use]
Lease Term: [Length of lease, e.g., 3 years] with an option to renew for an additional [renewal term]
Lease Commencement: [Proposed start date]
Base Rent: $[amount] per square foot annually, equaling $[monthly amount] per month
Security Deposit: [Amount, typically 1-2 months’ rent]
Rent Increases: [Annual percentage increase or fixed dollar amount]
Tenant Improvements: [Any modifications needed and who will pay]
Signage: [Rights to display business signage]
Utilities: [Who will be responsible for utilities]
Maintenance: [Responsibilities for property maintenance]
Parking: [Number of spaces and any special arrangements]
This letter of intent is not legally binding except for the confidentiality provision below. A formal lease agreement will need to be negotiated and executed by both parties.
Confidentiality: Both parties agree to keep the terms of this letter and subsequent negotiations confidential.
This letter of intent will expire on [date, typically 7-14 days from issuance]. Please indicate your agreement with these terms by signing below.
Thank you for your consideration. I look forward to a successful business relationship.
Sincerely,
[Your Signature]
[Your Printed Name]
[Your Title]
[Your Contact Information]
Agreed and Accepted:
[Landlord’s Name/Company]
Date
2. Letter of Intent for Office Space with Tenant Improvements
[Date]
[Landlord’s Name]
[Landlord’s Company]
[Address]
[City, State ZIP]
Subject: Letter of Intent – Office Space Lease at [Building Name/Address]
Dear Mr./Ms. [Landlord’s Last Name],
Please accept this letter as an expression of interest from [Your Company Name] to lease office space in [Building Name] located at [full address].
After touring the available space on [date], we would like to propose the following lease terms:
Tenant: [Your Company Name]
Premises: Suite [number], consisting of approximately [square footage] square feet on the [floor number] floor
Use: General office purposes for [type of business]
Lease Term: [number] years with option to renew for an additional [renewal term]
Target Commencement Date: [Proposed start date]
Base Rent: $[amount] per square foot per year, with monthly payments of $[monthly amount]
Rent Escalation: [percentage]% annual increase
Security Deposit: $[amount]
Tenant Improvement Allowance: $[amount] per square foot to be provided by Landlord for customization according to Tenant’s specifications
Improvement Work: Tenant improvements to include [list specific improvements needed: private offices, conference room, reception area, etc.]
Right of First Refusal: Tenant requests right of first refusal on adjacent space that may become available during the lease term
Parking: [number] dedicated spaces at [rate if applicable]
Building Hours and Access: 24-hour access, 7 days per week
Signage: Building directory and suite entrance signage
Utilities and Janitorial: [Specify who pays for what]
This letter is not a binding agreement but rather an expression of the basic terms we would like to include in a formal lease. All terms are subject to final negotiation and documentation in a lease agreement satisfactory to both parties.
Please review these proposed terms and respond with any comments or questions by [date]. Upon mutual agreement to these basic terms, we can proceed with drafting a formal lease agreement.
Thank you for your consideration. We look forward to the possibility of establishing our office in your building.
Sincerely,
[Your Signature]
[Your Name]
[Your Title]
[Your Company]
[Phone Number]
[Email Address]
AGREED TO AND ACCEPTED:
[Landlord/Company Name]
[Title]
Date
3. Letter of Intent for Industrial Warehouse Space
[Date]
[Landlord Name]
[Landlord Company]
[Address]
[City, State ZIP]
Subject: Letter of Intent for Warehouse Lease at [Property Address]
Dear Mr./Ms. [Landlord’s Last Name],
This letter confirms [Your Company Name]’s intent to lease the industrial warehouse space at [full property address].
Following our site visit on [date], we propose these terms:
Tenant: [Your Company Name]
Property: Warehouse facility of approximately [square footage] square feet located at [address]
Term: [number] year lease beginning [start date]
Base Rent: $[amount] per square foot per year, totaling $[monthly amount] monthly
Triple Net (NNN) Charges: Tenant responsible for property taxes, insurance, and common area maintenance, estimated at $[amount] per square foot annually
Security Deposit: $[amount]
Use: Storage and distribution of [your products/materials], light manufacturing, and related office activities
Loading Docks: Access to [number] loading docks with [describe height clearance] clearance
Floor Load Capacity: [weight capacity] pounds per square foot
Ceiling Height: [height] feet clear height
Office Space: Approximately [square footage] square feet of included office space
Utilities: Separately metered with Tenant responsible for all utility costs
HVAC: [Describe existing systems and any needed improvements]
Early Access: [number] days prior to lease commencement for setup and installations at no additional rent
Expansion Option: Right of first offer on adjacent space
Renewal Option: One [length] year option to renew at [percentage]% of then-market rate
This letter of intent is non-binding except for the confidentiality provision. Both parties agree to keep the terms of this letter and related discussions confidential.
If these terms are acceptable, please sign below to indicate your agreement to move forward with lease negotiations. This letter of intent will expire on [date] if not signed by both parties.
We look forward to a successful business relationship.
Sincerely,
[Your Signature]
[Your Name]
[Your Title]
[Your Company]
[Phone Number]
[Email Address]
ACCEPTED BY LANDLORD:
Signature
Printed Name
Title
Date
4. Letter of Intent for Restaurant Space
[Date]
[Landlord Name]
[Landlord Company]
[Address]
[City, State ZIP]
Subject: Letter of Intent to Lease Restaurant Space at [Property Address]
Dear Mr./Ms. [Landlord’s Last Name],
This letter expresses [Your Restaurant Name]’s intent to lease the commercial space at [property address] for restaurant operations.
Based on our discussion and property tour, we propose the following terms:
Tenant: [Your Restaurant Name/Company]
Premises: Approximately [square footage] square feet at [property address]
Use: Full-service restaurant and bar with hours of operation from [opening time] to [closing time], [days of operation]
Lease Term: Initial term of [number] years with [number] renewal options of [length] years each
Commencement Date: Lease to commence on [date] or upon completion of Tenant Improvements and receipt of all permits and licenses
Base Rent: $[amount] per square foot per year for the first year, with annual increases of [percentage]%
Percentage Rent: [percentage]% of gross sales above a breakpoint of $[amount] annually
Rent Abatement: [number] months of free rent during the initial build-out period
Security Deposit: $[amount]
CAM Charges: Tenant’s proportionate share of common area maintenance expenses, property taxes, and insurance
Tenant Improvements:
- Landlord to provide $[amount] per square foot improvement allowance
- Tenant responsible for restaurant-specific improvements including kitchen equipment, bar, dining area fixtures, and decor
- Landlord to deliver space with [list base building conditions: HVAC, plumbing, electrical capacity, grease trap, etc.]
Signage: Rights to install storefront signage, subject to landlord approval and local codes
Grease Trap: [New installation or existing specifications]
Exhaust System: Rights to install hood and exhaust system through roof
Exclusive Use: Tenant requests exclusive rights as the only [type of cuisine/restaurant concept] in the shopping center/building
Outdoor Seating: Rights to operate outdoor patio seating area of approximately [square footage] square feet
Assignment/Subletting: Right to assign or sublet with Landlord’s consent, not to be unreasonably withheld
This letter of intent is non-binding and subject to the preparation and execution of a formal lease agreement. The confidentiality of these negotiations is binding on both parties.
Please indicate your agreement with these proposed terms by signing below. We look forward to your response by [date].
Sincerely,
[Your Signature]
[Your Name]
[Your Title]
[Your Contact Information]
ACCEPTED:
[Landlord/Company Representative]
Date
5. Letter of Intent for Medical Office Space
[Date]
[Landlord Name]
[Landlord Company]
[Address]
[City, State ZIP]
Subject: Letter of Intent for Medical Office Lease at [Property Address]
Dear Mr./Ms. [Landlord’s Last Name],
On behalf of [Your Medical Practice/Name], I am submitting this letter of intent to lease medical office space in [Building/Complex Name] at [full address].
Following our visit to the property, we are interested in pursuing a lease with the following terms:
Tenant: [Your Medical Practice Name]
Premises: Suite [number], approximately [square footage] square feet on the [floor] floor
Practice Type: [Medical specialty] practice and related medical services
Lease Term: [number] years with option to extend for [number] additional years
Commencement Date: [Target date], contingent upon completion of improvements and receipt of necessary permits
Base Rent: $[amount] per square foot per year ($[monthly amount] monthly) for the first year, with annual increases of [percentage]%
Security Deposit: $[amount]
Tenant Improvement Allowance: $[amount] per square foot to be used for medical office buildout
Tenant Improvements Required:
- Reception and waiting area
- [number] exam rooms
- [number] private offices
- Lab/procedure area
- Patient restrooms (ADA compliant)
- Staff break room
- Medical equipment installation capabilities
- Additional HVAC for specialized areas
Operating Expenses: Tenant to pay proportionate share of building operating expenses, property taxes, and insurance
Utilities: Separately metered with Tenant responsible for all utilities within the premises
Medical Waste: Tenant responsible for medical waste disposal in compliance with all regulations
Parking: [number] dedicated staff spaces and adequate patient parking
Building Hours: 24/7 access for staff with secure after-hours entry system
Signage: Building directory, suite entrance, and rights to exterior signage (subject to building standards and local codes)
Exclusivity: Exclusive right to practice [specialty] medicine in the building
HIPAA Compliance: Landlord acknowledgment of and cooperation with HIPAA requirements
This letter of intent does not constitute a legally binding agreement except for the confidentiality provision. Both parties agree to maintain confidentiality regarding the terms of this proposal.
If these terms are acceptable, please sign below to indicate your agreement to proceed with lease negotiations. This letter of intent will expire on [date] if not signed by both parties.
Thank you for your consideration. We look forward to establishing our medical practice in your facility.
Sincerely,
[Your Signature]
[Your Name, Credentials]
[Your Title]
[Medical Practice Name]
[Phone Number]
[Email Address]
AGREED AND ACCEPTED:
[Landlord/Representative Signature]
[Printed Name and Title]
Date
6. Letter of Intent for Small Retail Boutique
[Date]
[Landlord Name]
[Landlord Address]
[City, State ZIP]
Subject: Letter of Intent to Lease Retail Space at [Property Address]
Dear Mr./Ms. [Landlord’s Last Name],
I am writing to express my interest in leasing the retail space at [property address] for [Your Boutique Name], a specialty retail store focusing on [type of merchandise].
After visiting the location on [date], I believe this space would be perfect for my business and would like to propose the following terms:
Tenant: [Your Name/Boutique Name]
Premises: Approximately [square footage] square feet of retail space at [property address]
Use: Retail sales of [describe merchandise and services]
Lease Term: [number] year initial term with option to renew for [number] additional years
Target Opening Date: [date]
Base Rent: $[amount] per square foot annually ($[monthly amount] per month)
Security Deposit: $[amount]
Rent Increases: [percentage]% annual increase
Lease Structure: [Modified gross, triple net, etc.] with tenant responsible for [list responsibilities]
Tenant Improvements:
- Landlord to provide space with [list what will be provided: flooring, lighting, walls, etc.]
- Tenant will install [list improvements: fixtures, displays, etc.]
- Landlord contribution of $[amount] toward improvements
Signage: Permission to install storefront signage according to shopping center guidelines and local codes
Hours of Operation: [Opening time] to [closing time], [days of week]
Utilities: [Responsibility for various utilities]
Property Maintenance: [Define responsibilities]
Parking: Shared access to center parking with [any special provisions]
Co-tenancy: [Any requirements regarding other tenants]
Exclusivity Clause: Exclusive right to sell [specific product category] within the shopping center
Lease Commencement: Upon completion of tenant improvements
This letter is non-binding except for the confidentiality provision, which requires both parties to keep the terms of our discussions private.
Should these terms be acceptable, please indicate by signing below. I would appreciate your response by [date]. Upon mutual agreement to these basic terms, we can proceed with drafting a formal lease agreement.
Thank you for considering [Your Boutique Name] as a tenant. I believe my business would be a great addition to your property.
Sincerely,
[Your Signature]
[Your Name]
[Your Boutique Name]
[Phone Number]
[Email]
LANDLORD ACCEPTANCE:
Signature
Printed Name
Date
7. Letter of Intent for Co-Working Space
[Date]
[Landlord Name]
[Landlord Company]
[Address]
[City, State ZIP]
Subject: Letter of Intent – Lease for Co-Working Space Operation at [Property Address]
Dear Mr./Ms. [Landlord’s Last Name],
This letter outlines [Your Co-Working Company Name]’s intent to lease commercial space at [property address] for the purpose of operating a co-working facility.
After careful consideration of the location and property features, we propose the following terms:
Tenant: [Your Co-Working Company Name]
Premises: [square footage] square feet on the [floor number] floor(s) of [building name/address]
Permitted Use: Operation of a co-working space offering shared workspaces, private offices, meeting rooms, and related amenities
Lease Term: [number] years with [number] renewal options of [length] years each
Commencement Date: [date], or [number] days after delivery of premises with Landlord’s work completed
Base Rent:
- Year 1-2: $[amount] per square foot annually ($[monthly amount] per month)
- Year 3-5: $[amount] per square foot annually ($[monthly amount] per month)
- [Add additional years as needed]
Rent Abatement: First [number] months rent-free to allow for build-out and initial marketing
Security Deposit: $[amount]
Operating Expenses: [Specify structure – triple net, modified gross, etc.]
Tenant Improvement Allowance: $[amount] per square foot
Tenant Improvements:
- Open plan workspace areas
- [number] private offices of varying sizes
- [number] conference/meeting rooms
- Kitchen/break areas
- Reception area
- Technology infrastructure including high-speed internet capacity
- [Any other specific improvements]
Landlord’s Work: [Specify work to be completed by Landlord prior to delivery]
Building Access: 24/7 access for Tenant and its members
HVAC: [Hours of operation and after-hours charges if applicable]
Signage: Building directory, entrance signage, and [describe any exterior signage rights]
Utilities: [Responsibility for utilities]
Parking: [number] dedicated spaces plus shared visitor parking
Right of First Refusal: On adjacent or additional space in the building
Assignment/Subletting: Right to sublease individual offices and desks to co-working members without Landlord approval, with other assignments requiring Landlord consent
This letter of intent is non-binding except for the confidentiality provision. Both parties agree to keep the terms and existence of this letter and subsequent negotiations confidential.
Please indicate your acceptance of these proposed terms by signing below. Upon mutual agreement, we can proceed with negotiating a formal lease document. This letter of intent will expire on [date] if not countersigned.
We look forward to bringing our co-working concept to your property and establishing a long-term business relationship.
Sincerely,
[Your Signature]
[Your Name]
[Your Title]
[Your Co-Working Company]
[Contact Information]
AGREED AND ACCEPTED:
[Landlord Signature]
[Printed Name/Title]
Date
8. Letter of Intent for Retail Space with Percentage Rent
[Date]
[Landlord Name]
[Landlord Company]
[Address]
[City, State ZIP]
Subject: Letter of Intent for Retail Lease at [Shopping Center/Property Name]
Dear Mr./Ms. [Landlord’s Last Name],
This letter confirms [Your Retail Business Name]’s interest in leasing retail space at [shopping center/property name] located at [full address].
Based on our discussions and property tour, we propose these lease terms:
Tenant: [Your Retail Business Name]
Premises: Suite/Unit [number], approximately [square footage] square feet
Use: Retail sales of [merchandise type] and related products
Lease Term: [number] years with [number] [length]-year renewal options
Commencement Date: The earlier of (i) [date] or (ii) [number] days after Tenant opens for business
Base Rent: $[amount] per square foot per year ($[monthly amount] monthly)
Percentage Rent: [percentage]% of gross sales exceeding a natural breakpoint (calculated as Base Rent divided by percentage rate)
Rent Increases: [percentage]% annual increases in Base Rent
CAM, Taxes, Insurance: Tenant’s proportionate share estimated at $[amount] per square foot annually
Marketing/Promotion Fund: [percentage]% of gross sales or $[amount] per square foot annually
Security Deposit: $[amount]
Tenant Improvement Allowance: $[amount] per square foot
Landlord’s Delivery Condition: [Describe the condition in which Landlord will deliver the space]
Tenant’s Work: [Describe improvements to be done by Tenant]
Rental Abatement: [number] months of free rent during build-out period
Opening Requirement: Tenant shall open for business within [number] days after completion of Tenant’s Work
Signage: Storefront signage rights in accordance with center criteria; inclusion on pylon/monument sign [if applicable]
Operating Hours: Tenant shall operate during the shopping center’s standard hours of [opening time] to [closing time], [days of week]
Exclusivity: Landlord agrees not to lease to another tenant whose primary business is [specific business type] within the shopping center during the lease term
Co-Tenancy: [Any requirements regarding other tenants that must remain open]
Assignment/Subletting: [Terms for assigning or subletting the space]
This letter of intent is non-binding except for the confidentiality provision. Both parties agree to maintain confidentiality regarding these negotiations.
If these terms are acceptable, please countersign below and return by [date]. Upon agreement to these basic terms, we will proceed with negotiating a formal lease agreement.
Thank you for your consideration. We look forward to becoming part of [shopping center name].
Sincerely,
[Your Signature]
[Your Name]
[Your Title]
[Your Company]
[Contact Information]
AGREED:
[Landlord/Representative]
Date
9. Letter of Intent for Short-Term Pop-Up Retail Space
[Date]
[Landlord Name]
[Landlord Company]
[Address]
[City, State ZIP]
Subject: Letter of Intent for Temporary Pop-Up Retail Space at [Property Address]
Dear Mr./Ms. [Landlord’s Last Name],
This letter expresses [Your Business Name]’s interest in leasing temporary retail space at [property address] for a pop-up store concept.
After visiting the location, we are excited about the possibility of using this space and propose the following terms:
Tenant: [Your Business Name]
Premises: Approximately [square footage] square feet of retail space identified as [unit/suite number]
Pop-Up Concept: [Brief description of your concept or products]
Lease Term: [number] months, starting [start date] and ending [end date]
Base Rent: $[amount] per month, to be paid in advance on the first of each month
Security Deposit: $[amount], refundable upon satisfactory inspection at end of term
Utilities: [Responsibility for utilities – typically tenant pays all utilities during occupancy]
Use Restrictions: Space to be used exclusively for retail sales of [product type] and related promotional activities
Hours of Operation: [opening time] to [closing time], [days of week]
Condition of Premises:
- Landlord to deliver in “as-is” condition
- Tenant permitted to make temporary, non-structural modifications
- Tenant responsible for returning space to original condition upon lease expiration
Tenant Improvements:
- Temporary fixtures, displays, and decor to be installed by Tenant
- No permanent alterations without Landlord approval
- All improvements to be removed at end of term
Signage: Temporary window and interior signage permitted, subject to Landlord approval and local regulations
Insurance: Tenant to maintain general liability insurance with minimum coverage of $[amount]
Early Termination: [Any provisions for early termination by either party]
Extension Option: Tenant requests right to extend for an additional [time period] with [notice period] notice to Landlord
Move-In/Move-Out: [Specific dates and times for setup and removal]
Parking: [Parking arrangements for staff and customers]
Marketing: Right to promote location on social media and other marketing channels
This letter of intent is non-binding except for the confidentiality provision. All terms are subject to final negotiation in a formal lease agreement acceptable to both parties.
Please indicate your agreement with these general terms by signing below. We request your response by [date] to allow adequate time for planning our pop-up launch.
Thank you for considering our proposal. We believe our pop-up concept will bring positive attention and foot traffic to your property.
Sincerely,
[Your Signature]
[Your Name]
[Your Title]
[Your Business]
[Contact Information]
ACCEPTED:
[Landlord Signature]
[Printed Name]
Date
10. Letter of Intent for Food Hall Vendor Space
[Date]
[Food Hall Owner/Manager Name]
[Company Name]
[Address]
[City, State ZIP]
Subject: Letter of Intent for Food Vendor Space at [Food Hall Name]
Dear Mr./Ms. [Owner/Manager’s Last Name],
I am writing to express [Your Food Business Name]’s interest in leasing a vendor stall within [Food Hall Name] located at [full address].
After visiting your venue and discussing the opportunity, we propose the following terms:
Vendor: [Your Food Business Name]
Concept: [Brief description of food concept/cuisine]
Premises: Vendor stall #[number] of approximately [square footage] square feet
Term: Initial term of [number] months/years with option to renew for [length of renewal]
Commencement Date: [Target opening date]
Base Rent: $[amount] per month
Percentage Rent: [percentage]% of gross sales above $[breakpoint amount] per month
Security Deposit: $[amount]
Common Area Maintenance Fee: $[amount] per month covering shared utilities, common seating maintenance, restrooms, waste disposal, and security
Marketing Fee: $[amount] per month or [percentage]% of gross sales toward collective food hall marketing
Hours of Operation: Vendor agrees to operate during all regular food hall hours: [days of week] [opening time] to [closing time]
Menu and Pricing: Vendor to maintain agreed-upon core menu items with right to offer specials and seasonal items
Equipment and Build-Out:
- Landlord to provide: [list provided infrastructure: hood system, water lines, electrical, etc.]
- Vendor responsible for: [cooking equipment, counter build-out, signage, etc.]
- Build-out allowance of $[amount] provided by Landlord
Health Permits: Vendor responsible for obtaining and maintaining all required health permits and food handler certifications
Insurance: Vendor to maintain liability insurance with minimum coverage of $[amount]
Exclusivity: [Any exclusivity rights for specific menu items or cuisine type]
Point of Sale System: Vendor to use food hall’s designated POS system for sales tracking and reporting
Utilities: [Specific arrangements for electricity, water, gas, etc.]
Alcohol Sales: [Any provisions regarding alcohol sales, if applicable]
Signage: Vendor permitted to install branded signage in accordance with food hall design guidelines
This letter of intent is non-binding except for the confidentiality clause. All terms are subject to the execution of a formal vendor agreement.
If these terms are acceptable, please sign below to indicate your interest in moving forward with negotiations. We request your response by [date].
Thank you for considering [Your Food Business Name] as a vendor for your food hall. We are excited about the possibility of joining your culinary community.
Sincerely,
[Your Signature]
[Your Name]
[Your Title]
[Your Food Business]
[Phone Number]
[Email Address]
ACCEPTED:
[Food Hall Representative]
[Title]
Date
11. Letter of Intent for Mixed-Use Commercial Space
[Date]
[Landlord Name]
[Landlord Company]
[Address]
[City, State ZIP]
Subject: Letter of Intent for Mixed-Use Commercial Space at [Property Address]
Dear Mr./Ms. [Landlord’s Last Name],
This letter expresses [Your Company Name]’s interest in leasing the mixed-use commercial space at [full property address].
Following our tour of the property on [date], we propose these lease terms:
Tenant: [Your Company Name]
Premises: A total of approximately [total square footage] square feet, consisting of:
- [square footage] square feet of retail space on the ground floor
- [square footage] square feet of office space on the [floor number] floor
Use: The ground floor will be used for [retail purpose] and the upper floor for [office purpose]
Lease Term: [number] years with [number] [length]-year renewal options
Commencement Date: [date] or [number] days after completion of Tenant Improvements
Base Rent:
- Retail Space: $[amount] per square foot annually ($[monthly amount] per month)
- Office Space: $[amount] per square foot annually ($[monthly amount] per month)
Rent Escalation: Annual increases of [percentage]%
Operating Expenses: [Structure: triple net, modified gross, etc.] with Tenant responsible for [list Tenant’s responsibilities]
Security Deposit: $[amount]
Tenant Improvement Allowance: $[amount] per square foot
Landlord’s Work Prior to Delivery:
- [List specific items Landlord will complete]
Tenant Improvements:
- Retail area: [describe improvements]
- Office area: [describe improvements]
Signage: Rights to install exterior signage on both street frontage and building directory, subject to landlord approval and local regulations
Parking: [number] dedicated spaces plus shared visitor parking
Hours of Access: 24-hour access to office portion; retail portion during normal business hours of [opening time] to [closing time], [days]
Utilities: Separately metered with Tenant responsible for all utilities
ADA Compliance: [Responsibility for compliance costs]
Option to Expand: Right of first refusal on adjacent spaces
Subletting/Assignment: Right to sublet or assign with Landlord’s consent, not to be unreasonably withheld
This letter of intent is non-binding except for the confidentiality provision. All terms are subject to negotiation and execution of a formal lease agreement.
Please indicate your acceptance of these proposed terms by signing below. Upon mutual agreement, we will proceed with lease negotiations. We request your response by [date].
Thank you for your consideration. We believe our business would be an excellent fit for this unique space.
Sincerely,
[Your Signature]
[Your Name]
[Your Title]
[Your Company]
[Contact Information]
AGREED AND ACCEPTED:
[Landlord/Representative]
[Title]
Date
12. Letter of Intent for Franchise Location
[Date]
[Landlord Name]
[Landlord Company]
[Address]
[City, State ZIP]
Subject: Letter of Intent to Lease Commercial Space for [Franchise Name] at [Property Address]
Dear Mr./Ms. [Landlord’s Last Name],
As an authorized franchisee of [Franchise Name], I am submitting this letter of intent to lease commercial space at [property address] for a new [Franchise Name] location.
After reviewing the site and discussing with my franchisor, I propose the following lease terms:
Tenant: [Your Name/Company] d/b/a [Franchise Name]
Premises: Approximately [square footage] square feet at [full property address]
Permitted Use: Operation of a [Franchise Name] [type of business: restaurant, retail store, service business, etc.]
Franchise Approval: This lease is contingent upon final site approval by [Franchise Name] corporate offices
Lease Term: [number] years with [number] [length]-year renewal options
Commencement Date: The earlier of (i) [date] or (ii) [number] days after receipt of all permits and completion of Tenant’s Work
Base Rent: $[amount] per square foot per year ($[monthly amount] per month)
Rent Increases: [percentage]% annual increases
Type of Lease: [Triple net, modified gross, etc.]
Security Deposit: $[amount]
Tenant Improvement Allowance: $[amount] per square foot toward franchise-mandated improvements
Landlord’s Work: [Specify work to be completed by Landlord]
Tenant’s Work: All improvements necessary to comply with [Franchise Name]’s standard build-out requirements, including:
- [List major required elements of franchise build-out]
- All work to be completed according to [Franchise Name]’s specifications and standards
Signage: Rights to install all standard [Franchise Name] exterior and interior signage in compliance with franchise requirements and local codes
Parking: [Requirements specific to the franchise]
Hours of Operation: [Franchise-mandated hours]
Exclusivity: No other [specific competitor or franchise type] to be permitted within the [shopping center/building/development]
Assignment Rights: Right to assign to another qualified [Franchise Name] franchisee with notice to Landlord
Franchisor Rights: Landlord to provide Franchisor with notice of any Tenant default and opportunity to cure defaults or assume the lease
Kick-Out Clause: Landlord may terminate if Tenant fails to achieve minimum gross sales of $[amount] by the end of year [number]
Opening Requirement: Tenant must open for business within [number] days of receiving permits and completing build-out
This letter of intent is non-binding except for the confidentiality provision. All terms are subject to the execution of a mutually acceptable lease agreement and franchise approval.
Please indicate your acceptance of these terms by signing below. Upon mutual agreement, we will proceed with drafting a formal lease document that complies with [Franchise Name]’s requirements. We request your response by [date].
Thank you for your consideration. I look forward to bringing [Franchise Name] to your property.
Sincerely,
[Your Signature]
[Your Name]
[Your Company Name]
[Your Title]
[Contact Information]
ACCEPTED:
[Landlord/Representative Signature]
Printed Name and Title
Date
13. Letter of Intent for Art Gallery Space
[Date]
[Landlord Name]
[Landlord Company]
[Address]
[City, State ZIP]
Subject: Letter of Intent to Lease Gallery Space at [Property Address]
Dear Mr./Ms. [Landlord’s Last Name],
This letter expresses [Your Gallery Name]’s interest in leasing the commercial space at [property address] for use as an art gallery and cultural venue.
After touring the space on [date], we believe it would be ideal for our gallery and propose the following terms:
Tenant: [Your Gallery Name/Company]
Premises: Approximately [square footage] square feet located at [full property address]
Use: Fine art gallery, exhibition space, and related cultural events
Lease Term: [number] years with option to renew for an additional [number] years
Commencement Date: [date] or upon completion of build-out and receipt of certificates of occupancy
Base Rent: $[amount] per square foot annually ($[monthly amount] per month)
Rent Escalation: [percentage]% increase annually
Security Deposit: $[amount]
Operating Expenses: [Specify structure and responsibilities]
Tenant Improvement Allowance: $[amount] to be applied toward gallery-specific improvements
Required Improvements:
- Track lighting systems throughout exhibition spaces
- Reinforced walls for hanging artwork
- Climate control systems for preservation of artwork
- Security system installation
- [Any other specific requirements]
Wall Modifications: Permission to modify, paint, and repair walls between exhibitions with proper restoration at lease end
Event Usage: Right to host opening receptions, artist talks, and cultural events, including serving wine and light refreshments
Hours of Operation: [Regular gallery hours] with extended hours for special events up to [number] times per month
Signage: Permission for tasteful exterior signage consistent with the artistic nature of the business
Insurance: Gallery insurance covering artwork on premises with Landlord named as additional insured
Utilities: [Responsibility for utilities]
Parking: [Arrangements for gallery staff and visitors]
HVAC: Climate control sufficient to maintain stable temperature and humidity levels appropriate for artwork preservation
Exclusivity: No competing art galleries to be permitted within the same building or complex
This letter of intent is non-binding except for the confidentiality provision. Both parties agree to keep the terms of this letter and subsequent negotiations confidential.
Please indicate your acceptance of these proposed terms by signing below. We request your response by [date]. Upon mutual agreement to these basic terms, we can proceed with lease negotiations.
Thank you for your consideration. We believe our gallery would enhance the cultural profile of your property and the surrounding area.
Sincerely,
[Your Signature]
[Your Name]
[Your Title]
[Your Gallery Name]
[Contact Information]
ACCEPTED:
[Landlord Signature]
Printed Name
Date
14. Letter of Intent for Fitness Studio Space
[Date]
[Landlord Name]
[Landlord Company]
[Address]
[City, State ZIP]
Subject: Letter of Intent for Fitness Studio Lease at [Property Address]
Dear Mr./Ms. [Landlord’s Last Name],
This letter confirms [Your Fitness Business Name]’s interest in leasing commercial space at [property address] for a fitness studio specializing in [type of fitness: yoga, pilates, personal training, etc.].
After viewing the space, we propose the following lease terms:
Tenant: [Your Fitness Business Name]
Premises: Approximately [square footage] square feet at [property address], [unit/suite number]
Use: Operation of a fitness studio offering [types of classes/services] and retail sales of related products
Lease Term: [number] years with [number] options to renew for [length] years each
Commencement Date: [date] or [number] days after completion of Tenant Improvements
Base Rent: $[amount] per square foot per year ($[monthly amount] per month)
Rent Increases: [percentage]% annual increase
Operating Expenses: [Structure: NNN, Modified Gross, etc.] with Tenant responsible for [list responsibilities]
Security Deposit: $[amount]
Tenant Improvement Allowance: $[amount] per square foot
Required Improvements:
- Proper flooring suitable for fitness activities
- Mirrors on [specify walls]
- Sound insulation/acoustical treatments
- Upgraded HVAC system to accommodate higher occupancy and physical activity
- Adequate restrooms and changing areas
- [Any other specific improvements]
Landlord’s Work: [List items Landlord will provide or complete]
Signage: Permission for storefront and building directory signage
Hours of Operation: [opening time] to [closing time], [days of week]
Noise Restrictions: Tenant acknowledges responsibility to maintain sound levels below [specify decibel level] and/or install sound insulation
Utilities: [Specify responsibility for utilities]
Parking: [number] dedicated spaces plus shared customer parking
Restrooms: [Requirements specific to fitness use]
Exclusivity: Landlord agrees not to lease space within the building/complex to another fitness studio offering [specific types of fitness]
HVAC: Extended HVAC hours to accommodate early morning and evening classes
This letter of intent is non-binding except for the confidentiality provision. All terms are subject to negotiation and execution of a mutually acceptable lease agreement.
If these terms are acceptable, please indicate by signing below. We request your response by [date].
Thank you for your consideration. We are excited about the possibility of establishing our fitness studio at your property.
Sincerely,
[Your Signature]
[Your Name]
[Your Title]
[Your Fitness Business]
[Contact Information]
ACCEPTED:
[Landlord Signature]
Printed Name
Date
15. Letter of Intent for Educational/Tutoring Space
[Date]
[Landlord Name]
[Landlord Company]
[Address]
[City, State ZIP]
Subject: Letter of Intent to Lease Space for Educational Center at [Property Address]
Dear Mr./Ms. [Landlord’s Last Name],
This letter expresses [Your Educational Business Name]’s interest in leasing commercial space at [property address] for an educational center providing [type of educational services: tutoring, test prep, enrichment classes, etc.].
After touring the location, we believe this space would be well-suited for our educational needs and propose the following terms:
Tenant: [Your Educational Business Name]
Premises: Approximately [square footage] square feet at [property address]
Use: Educational services including [specific services: tutoring, classes, workshops, etc.]
Lease Term: [number] years with option to extend for [number] additional years
Commencement Date: [date] or upon completion of tenant improvements
Base Rent: $[amount] per square foot annually ($[monthly amount] per month)
Rent Escalation: [percentage]% increase annually
Security Deposit: $[amount]
Operating Expenses: [Structure and responsibilities]
Tenant Improvement Allowance: $[amount] toward educational space build-out
Required Improvements:
- [number] classroom/tutoring rooms
- Reception/waiting area
- Administrative office
- Student restrooms
- Storage space
- Technology infrastructure for educational purposes
- [Any other specific requirements]
Landlord’s Work: [List specific items Landlord will complete]
Tenant’s Work: [List improvements Tenant will complete]
Signage: Rights to building directory, suite entrance, and exterior signage in compliance with building standards
Hours of Operation: [opening time] to [closing time], [days of week], with occasional weekend usage
Parking: Adequate parking for staff and clients, including short-term drop-off/pick-up spaces
Utilities: [Responsibility for utilities]
Security: [Specific security needs for educational facility with minors]
Internet Access: High-speed internet infrastructure adequate for educational purposes
Zoning Confirmation: Landlord confirms zoning permits educational use
ADA Compliance: Premises to comply with all accessibility requirements
Exclusivity: No other competing educational businesses offering [specific services] to be permitted within the building/complex
This letter of intent is non-binding except for the confidentiality provision. Both parties agree to maintain confidentiality regarding these negotiations.
Please indicate your agreement with these proposed terms by signing below. We request your response by [date]. Upon mutual agreement, we can proceed with drafting a formal lease agreement.
Thank you for your consideration. We look forward to providing quality educational services from your property.
Sincerely,
[Your Signature]
[Your Name]
[Your Title]
[Your Educational Business]
[Contact Information]
ACCEPTED:
[Landlord Signature]
Printed Name and Title
Date
Wrap-up: Letters of Intent for Leasing Commercial Space
Creating an effective letter of intent is the first step toward securing the right commercial space for your business. These sample letters provide frameworks that can be customized to your specific situation and needs.
A well-crafted letter of intent helps set clear expectations between you and the landlord before investing time and money in a full lease agreement. Take time to detail your requirements, but keep the language straightforward and the document non-binding except for confidentiality clauses.
Remember that most terms in a letter of intent are negotiable. The goal is to reach mutually beneficial terms that protect your interests while also being fair to the landlord. Once both parties sign off on the letter of intent, you can move forward with confidence to the formal lease agreement.
Whether you need space for a retail store, restaurant, office, or any other business type, starting with a professional letter of intent puts you on the path to a successful commercial lease.