SUBJECT AREA - LEASING VARIABLES

Letter of Intent Provisions

A Letter of Intent, or LOI, covers the primary business or economic points in addition to the primary legal provisions that the tenant and Landlord or their authorized representative and/or broker normally address together.

The Letter of Intent provisions normally include the following in this order:

(Please consult the Lease Terms Definition section of this website for definitions)

1.     Landlord and Tenant name address, phone and email addresses.

2.    Address of the proposed location to be leased.

3.    Site Plan identifying the proposed location.

4.    Term of the lease and date it is over.

5.    Base rent amount stated in psf, monthly and annual amounts.

6.    Build out time defined.

7.     Rent commencement date.

8.    Option dates with rents noted.

9.    Percentage rent amount and break-point figure.

10.   Prorata charge defined: CAM, Taxes, Insurance.

11.   Improvements landlord will provide.

12.   Tenant improvement allowance landlord will provide to assist in build-out.

13.   Exclusive language.

14.   Co-tenancy language.

15.   Projection turnover to tenant date for new construction.

16.   No Relocation language.

17.   No mandated landlord advertising.

18.   Personal guarantee provision.

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