Commercial leases start with a letter of intent. It is a non-binding, executed agreement that sets forth key terms and conditions in which the parties are prepared to agree. Yurus Management & Counsel, LLC does not care for the letter of intent. It lends itself to negotiating terms bit by bit. It’s a handshake deal. It’s no deal at all. As a result, parties regularly seek to renegotiate terms when the agreement is presented as a whole. Nonetheless, it is a material process. Therefore, it should be taken seriously and drafted accordingly.
Matters to consider in the letter of intent include, but are not limited to, the following: (i) Landlord, (ii) Tenant, (iii) location and size of premises, (iv) term, (v) rent commencement, (vi) base rent, (vii) security deposit, (viii) permitted use, (ix) common area maintenance charges psf and obligations related thereto, (x) work landlord shall be required to perform, (xi) improvements tenant shall be required to perform, (xii) tenant’s allowance to perform said improvements, (xiii) rights to signage, (xiv) deliver date of property, (xv) and contingencies.
The information contained in this document does not constitute legal advice.