A Letter of Intent For Lease Space is commonly used in New Zealand's commercial property sector as a preliminary step before entering into a formal lease agreement. This document is typically employed when parties have reached initial understanding on key commercial terms but need to formalize their intentions before proceeding with detailed lease negotiations and due diligence. It outlines fundamental aspects such as the property description, proposed rental terms, intended use, and timeline for finalizing the lease. While generally non-binding, it serves as a crucial tool in commercial property negotiations, providing a clear framework for subsequent discussions and demonstrating commitment from both parties. The document must align with New Zealand's property law requirements and commercial practices, particularly the Property Law Act 2007 and Contract and Commercial Law Act 2017.
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1. Letter Header: Includes date, addressee details, and reference line
2. Introduction: Identifies the parties and their roles (prospective landlord and tenant)
3. Property Description: Clear identification and description of the premises to be leased
4. Key Commercial Terms: Outlines proposed rent, lease term, commencement date, and any rent reviews
5. Intended Use: Specifies the proposed use of the premises
6. Conditions Precedent: Any conditions that must be met before proceeding with the lease
7. Timeline: Expected timeline for negotiation and execution of the formal lease
8. Non-Binding Nature: Statement clarifying the non-binding nature of the LOI (except for any specifically binding terms)
9. Confidentiality: Statement regarding confidentiality of negotiations
10. Signature Block: Space for signatures of both parties
1. Exclusivity Period: Used when parties want to agree on an exclusive negotiation period
2. Due Diligence: Include when the tenant requires a period to conduct investigations of the property
3. Costs: Include when there's a need to specify who bears the costs of lease preparation and negotiations
4. Fit-out Requirements: Used when specific tenant improvements or modifications are contemplated
5. Break Clause Intentions: Include when early termination rights are being considered
6. Green Lease Provisions: Used when parties intend to include sustainability measures in the final lease
7. Guarantees: Include when personal or bank guarantees will be required
1. Floor Plan: Preliminary floor plan or sketch of the premises
2. Photos: Current photographs of the premises if relevant
3. Draft Timeline: Detailed timeline of key dates and milestones
4. Preliminary Terms Sheet: Summary of key commercial terms in table format
Relevant legal definitions
Premises
Commencement Date
Proposed Lease
Permitted Use
Initial Term
Base Rent
Operating Expenses
Outgoings
Due Diligence Period
Business Day
Confidential Information
Landlord's Works
Tenant's Works
Letter of Intent
Deposit
Bank Guarantee
Binding Terms
Non-Binding Terms
Exclusive Negotiation Period
Common Areas
GST
Lease Documentation
Professional Advisors
Related Parties
Commencement Date
Proposed Lease
Permitted Use
Initial Term
Base Rent
Operating Expenses
Outgoings
Due Diligence Period
Business Day
Confidential Information
Landlord's Works
Tenant's Works
Letter of Intent
Deposit
Bank Guarantee
Binding Terms
Non-Binding Terms
Exclusive Negotiation Period
Common Areas
GST
Lease Documentation
Professional Advisors
Related Parties
Clauses
Identification of Parties
Property Description
Commercial Terms
Permitted Use
Duration
Financial Terms
Conditions Precedent
Due Diligence
Exclusivity
Confidentiality
Non-Binding Nature
Binding Provisions
Costs
Timeline
Good Faith
Termination
Legal Effect
Governing Law
Property Access
Assignment
Representations
Notices
Property Description
Commercial Terms
Permitted Use
Duration
Financial Terms
Conditions Precedent
Due Diligence
Exclusivity
Confidentiality
Non-Binding Nature
Binding Provisions
Costs
Timeline
Good Faith
Termination
Legal Effect
Governing Law
Property Access
Assignment
Representations
Notices
Relevant Industries
Retail
Commercial Office
Industrial
Healthcare
Hospitality
Education
Technology
Professional Services
Manufacturing
Logistics
Entertainment
Food and Beverage
Relevant Teams
Legal
Real Estate
Property Management
Finance
Operations
Facilities Management
Business Development
Risk Management
Corporate Services
Commercial Operations
Relevant Roles
Commercial Property Manager
Real Estate Agent
Property Lawyer
Leasing Manager
Facilities Manager
Chief Financial Officer
Business Development Manager
Operations Director
Legal Counsel
Property Director
Asset Manager
Tenant Representative
Corporate Real Estate Manager
Property Consultant
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