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Letter of Intent (LOI) in Commercial Leasing
A preliminary commercial document outlining core deal terms—such as base rent, lease duration, TI allowances, and options—before drafting the lease.
A Letter of Intent (LOI) is a preliminary, non-binding document outlining the primary business and financial terms agreed upon by a prospective commercial tenant and landlord prior to drafting a full formal lease agreement.
Key negotiated terms include initial base rent, lease term length, tenant improvement allowances, option periods, exclusive uses, and free rent concessions.
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See all Leasing terms →Assignment of Lease
The complete legal transfer of an existing tenant's entire leasehold rights, obligations, and physical occupancy to a new incoming tenant.
Read definition →Base Rent
The fixed minimum monthly rent agreed upon in a lease agreement, excluding utilities, janitorial, or shared operating expense pass-throughs.
Read definition →Co-Tenancy Clause
A commercial lease clause granting rent reductions or termination rights if anchor tenants vacate or center occupancy falls below agreed levels.
Read definition →Continuous Operation Covenant
A commercial lease requirement obligating a retail tenant to keep its store open, fully stocked, and staffed during designated business hours.
Read definition →Escalation Clause
A commercial lease provision specifying annual rent increases tied to a fixed percentage, stepped rates, or the Consumer Price Index (CPI).
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