Commercial Lease Letters of Intent: Obtaining Favorable Terms and Avoiding Protracted Negotiations
Permitted Uses, Assignment and Subletting, Signage, Improvements, Financial Guarantees, SNDAs, Confidentiality Provisions
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will address both practical and strategic considerations for drafting and negotiating critical terms for a letter of intent (LOI) for commercial leasing transactions. The panel will discuss how principals and representatives for landlords and tenants should structure an LOI and use the document to promote smooth lease negotiations in office and retail lease transactions.
- Advantages of using LOI in real estate leasing transactions
- Meeting of the minds
- Oft-overlooked key issues
- Ease of drafting and negotiating a lease
- Binding vs. non-binding terms
- Negotiating specific terms of the LOI and general format of the LOI
- Term and renewal options
- Security deposits
- Build-out, construction allowance, terms of construction
- Use/exclusive use
- Code compliance
- Other unknown conditions
- Parking and other amenities
- Exit strategies
- Change in ownership
- Enforceability of the LOI
- Drafting pitfalls
- Use of disclosures in an LOI
The panel will review these and other relevant issues:
- What are the key advantages of LOIs from the perspectives of the parties?
- What strategic decisions need to be made to determine how comprehensive an LOI should be?
- What are terms of the LOI that should be made binding?
- What is the impact technology has on negotiating LOIs and on contract formation, including the use of text messages, emails, and other means of electronic communication?
- Why use the qualifier "to be further negotiated in the lease documentation"?
- Should marketing language be avoided?
- What factors do courts consider in determining the parties' intent to bind, and thus, the enforceability of the terms of the LOI?
- Who signs the LOI, if at all?
Cushman & Wakefield
A recognized market leader and innovator, Ms. Duskin has leased or sold more than 10 million square feet of office... | Read More
A recognized market leader and innovator, Ms. Duskin has leased or sold more than 10 million square feet of office space in the San Francisco Greater Bay Area. She represents tenants and building owners in a balanced real estate practice. Ms. Duskin has been with the firm over 20 years and also was a Senior Manager with Ernst & Young’s Real Estate Consulting Group. Ms. Duskin’s current leasing assignments include the Transamerica Pyramid Center (The Tower and two additional properties, totalling 800,000 RSF) and the Tier One property at 345 California Center (600,000 RSF). Her office tenant specialty is professional service firms, including major law, engineering, and consulting companies.Close
Mr. Fishman focuses his practice on representing real estate developers, owners and secured lenders in the acquisition,... | Read More
Mr. Fishman focuses his practice on representing real estate developers, owners and secured lenders in the acquisition, sale and financing of commercial properties. He has an active leasing practice representing owners of several major office buildings, as well as tenants in lease and sublease transactions. His expertise includes letters of intent, tenant improvement work agreements, security deposits/letters of credit, signage rights, expansion and contraction rights, permitted transfers, operating expense audits and lender and master landlord recognition agreements.Close