Office Tenant Letters of Intent Strategies

The best time for a tenant to negotiate key lease terms is before the tenant negotiates the lease.  After a tenant requests the landlord to prepare a draft lease (on its landlord favorable form), the tenant has signaled to the landlord that it has committed to the building and consequently loses market leverage.   As office leases and the entire leasing process is decidedly tilted toward landlords, to level the playing field, tenants should negotiate a detailed Letter of Intent (“LOI”) memorializing all business terms and key legal terms to serve as the “blue print” for the lease draft.  A well negotiated LOI will maximize lease concessions for the tenant as well as save time and money in the lease drafting process.  Additionally, the inherent process of negotiating an LOI, will tell you a lot about the landlord and their “hot button” issues, etc… Discussed below are strategies that tenants should employ to effectively negotiate an LOI.

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