Calculation & Generation Results
About This Tool
Generate a non-binding Commercial Real Estate Letter of Intent (LOI) establishing tenant space requirements, NNN vs Gross lease terms, tenant improvement (TI) allowances, and rent escalation.
Frequently Asked Questions
What is the legal purpose of a Letter of Intent (LOI) in commercial leasing?
An LOI outlines primary business terms (rent rate, square footage, lease term, tenant improvement allowance) before spending thousands of dollars on attorney drafting fees. It is typically non-binding except for confidentiality and exclusivity clauses.
What is a Tenant Improvement (TI) Allowance?
A TI allowance is a cash contribution provided by the commercial landlord (e.g. $40 to $70 per square foot) to help the tenant build out offices, plumbing, flooring, and electrical infrastructure.
What is the difference between a NNN and Full Service Gross lease?
In a Triple Net (NNN) lease, the tenant pays base rent plus their proportionate share of property taxes, building insurance, and Common Area Maintenance (CAM). In a Full Service Gross lease, the landlord pays all operating expenses out of a higher base rent.
What is a standard annual commercial rent escalation rate?
In the US commercial real estate market, base rents typically increase by 3.0% to 3.5% annually, or are tied to the Consumer Price Index (CPI).