This is another simple but important document I wanted to share with you, a Letter of Intent to lease office space. Letters of Intent evev thogh they are not binding documents represent the essence of the negotiation, therefore you should be very careful assuring all the relevant terms are included and understood by both parties.
Hope it helps!!
JM Padron, CCIM
Month Day,
2009
XXXXXXX
XXXXXXX
Address
Phone:
Fax:
E-Mail:
RE: Letter of Intent - Business Type
Name of the Building - Unit 7D
Dear Mr. XXXXXX,
I am presenting the following proposal to potentially lease space at __________________________ located at __________________________________________..
The following terms and conditions are not intended to be binding upon either party, but are for
the purpose of discussion only.
1. LANDLORD: XXXXXXXXXXXXX
2. TENANT: YYYYYYYYYYYYY
4. USE CLAUSE: Tenant may use the premises for the principal
Business of ____________________________
5. OFFICE SIZE: Approx.x,xxxx square feet, unit_______
6. PRIMARY TERM: Four (4) Years
7. OPTIONS: Two (2) four (4) Year options with 3% annual increases.
8. MINIMUN BASE RENT: YEAR(S) BASE RENT (PSF)
1 $25.00
2 $26.00
3 $27.04
4 $28.12
9. ESTIMATED
TURNOVER: Immediately
10. RENT
COMMENCEMENT: The rent shall commence _______________ from the effective date of the lease or when the business starts whichever occur first.
11. UTILITIES: Tenant shall pay for all utilities.
12. DELIVERY: The Office will be delivered AS IS, completely equipped and furnished.
13. LEASE FORM: Landlord's standard lease form.
14. ADDITIONAL CHARGES: Tenant shall pay its prorata share of real property taxes, estimated at $_____ per SQ FT per year and common area maintenance and insurance estimated at $_____ per SQ FT per year, for a total of $_____per SQ FT per year based on its proportionate leasable building area.
16. SECURITY DEPOSIT: ____________ (Average corresponding to two months)
17. GUARANTY: Personal guaranty for the term of the lease
18. BROKERS: Landlord and Tenant agree that the only brokers participating in this lease are _____________________________________________________________
This proposal is contingent upon Landlord's review and approval of Tenant's financial statements, and is only an outline of the general and basic business terms of the proposed lease. This proposal is not intended to be legally binding on either party until a mutually acceptable lease is executed by both parties within 30 days.
If you are in agreement with the aforementioned business terms, please acknowledge by signing below and returning a copy to my office. Landlord reserves the right to rescind this offer at any time.
Sincerely,
Agreed and Acknowledged:
NAME OF BUSINESS
By: _______________________________ Date: ________________________
Principal
Agreed and Acknowledged:
By: _____________________________ Date: ________________________
Its: Managing Partner
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