Free Tool

LOI Letter Generator

Generate a professional Letter of Intent (LOI) for commercial lease negotiations in seconds. Fill in your deal details and get a complete, copy-ready LOI template.

Professional format Auto-calculates rent schedule Includes SNDA clause Copy with one click

Parties & Property

SF

Financial Terms

$

Landlord's listed rate

$

What you're offering

% /yr
mo
$/SF

Tenant improvement allowance per RSF

Lease Term

days

Key Asks

spaces
Letter of Intent Preview

Your LOI will appear here

Fill in the form fields and click "Generate LOI" to create a professional letter of intent template.

Legal disclaimer: This LOI template is for informational purposes only and does not constitute legal advice. Commercial lease negotiations involve significant financial and legal risk. Always consult a qualified commercial real estate attorney before signing any LOI or lease agreement.

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How to Use a Letter of Intent Effectively

1

Start with the LOI

An LOI establishes the fundamental deal terms before attorneys spend thousands on a full lease. It saves time, aligns expectations early, and prevents wasted effort on deals that won't work.

2

Be specific but not binding

The more specific your LOI, the faster the lease drafting process. Specify exact rent figures, TI amounts, and term length. But always include the non-binding language — it protects you if negotiations break down.

3

Request exclusivity

Ask the landlord to take the space off the market for 15–30 days after LOI acceptance. This gives you time to conduct due diligence and finalize lease terms without competing with other prospects.

Key LOI Terms Explained

Asking Rent vs. Target Rent: The gap between these figures is your opening negotiating position. Most landlords expect 5–15% below asking for qualified tenants.
Free Rent: Rent abatement at lease commencement — typically 1 month per year of lease term. 5-year lease → 3–5 months free rent is common.
TI Allowance: Landlord contribution toward your build-out. Market rates range from $25/SF (office, warm shell) to $80+/SF (medical, heavy build).
Rent Escalation: 3% annual increases are standard. Fixed escalations are better for tenants than CPI-based escalations in high-inflation environments.
Renewal Options: Your right to extend the lease at pre-agreed terms. "Fair market value" options give you less certainty than fixed-rate renewals.
SNDA: Subordination, Non-Disturbance, and Attornment — protects your tenancy if the landlord defaults on their mortgage. Always demand this upfront.

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