LOI (Letter of Intent)

Category: legal

A non-binding document outlining the basic terms of a lease or purchase agreement before the formal contract is drafted.

The LOI is the "handshake on paper." It establishes the price, the timeline, and the basic responsibilities (like TI allowances) so the lawyers know what to write in the final 50-page lease. It saves time and legal fees by ensuring both parties agree on the core economics first.

Common Examples

• The broker submitted a Letter of Intent to secure the space, proposing a 5-year term with a 3% annual rent escalation.
• While the LOI is generally non-binding, it sets the psychological framework for the entire commercial negotiation process.