These little non-binding gems are how you agree and define the business terms of a lease before getting to a formal document.
Learn how to compare, normalize and negotiate key terms like effective rent, tenant allowances, timing, concessions and more!
Once you have narrowed down your top three or four options, it's time to get to the nitty gritty. Every lease and every letter of intent is different. While letters of intent are non-binding, at this point you'll start receiving letters of intent from the landlords (usually their broker or representative). These are essentially landlord offers, and they outline the business terms of a lease. They are shorter documents that are used to build the schedules and business points of a larger lease document.
Negotiate from a point of strength. Have references, income statement/balance sheet info, and at least two years of tax returns ready. If you're new to signing leases, expect a personal credit check and a personal guarantee at lease signing.
Bs sure to also consider these:
Consider these four factors when negotiating:
The best tool for negotiations is relevant comparable lease information. Here at Tenavox we track this through our review-based database. Compare any "quoted" terms you have to our database and our estimated range of deals done to make a better lease decision. Ultimately, your results may vary based on your business profile but it's important to be educated before engaging with a building representative.
What's My Grade? GO TO STEP 6
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