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Letter of Intent to Sublease (Commercial) Template
Outline proposed commercial sublease terms clearly before signing a full agreement using this Letter of Intent to Sublease Template.
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Letter of Intent to Sublease (Commercial) Template
Date: [Date]
This Letter of Intent to Sublease (Commercial) (the “LOI”) is made between:
Sublandlord (Tenant): [Tenant/Sublandlord Legal Name], address: [Address] (“Sublandlord”)
Proposed Subtenant: [Subtenant Legal Name], address: [Address] (“Subtenant”)
Premises: [Property Address + Suite/Unit] (the “Premises”)
Prime Lease Date: [Lease Date] (between Landlord and Sublandlord)
1. Purpose and Non-Binding Nature
1.1 This LOI outlines proposed business terms for a potential sublease. Except for any sections marked “Binding,” this LOI is non-binding and is not a lease.
1.2 The Parties do not intend to be bound unless and until a final sublease agreement is executed.
2. Space and Use
2.1 Space: ☐ Entire Premises ☐ Portion of Premises: [Describe + square footage].
2.2 Floor Plan (If Partial): ☐ Attached as Exhibit A ☐ Not attached.
2.3 Permitted Use: [Describe intended business use], subject to the Prime Lease and applicable laws.
3. Term and Commencement
3.1 Proposed Sublease Term: [Start Date] to [End Date].
3.2 Commencement Condition (Optional): ☐ On a fixed date ☐ On landlord consent ☐ After buildout completion ☐ Other: [Condition].
3.3 Renewal Option (Optional): ☐ None ☐ One renewal of [__] months/years at: [Rent method].
4. Rent and Deposits
4.1 Base Rent: $[Amount] per ☐ month ☐ year (or $[__]/sq ft).
4.2 Rent Escalations (Optional): [Annual increases / step-ups].
4.3 Security Deposit: $[Amount].
4.4 Other Fees (Optional): [Admin fee, keys, etc.].
5. Operating Expenses / CAM / Utilities
5.1 Expenses Paid By Subtenant: ☐ Utilities ☐ CAM/Operating expenses ☐ Taxes ☐ Insurance ☐ Janitorial ☐ Other: [List].
5.2 Expense Allocation (Optional): [Pro rata share / metered / fixed amount].
5.3 Reconciliation (Optional): [Annual reconciliation method].
6. Improvements and Condition
6.1 Condition at Delivery: ☐ As-is ☐ Clean and broom-swept ☐ Other: [Describe].
6.2 Tenant Improvements (Optional):
Subtenant improvements: [Describe + approval rules]
Sublandlord contributions (if any): $[Amount] or [Work described]
6.3 Signage (Optional): [Rules and approvals].
6.4 Furniture/Equipment (Optional): ☐ Included (list) ☐ Not included.
7. Landlord Consent and Prime Lease Compliance
7.1 Any sublease is subject to Sublandlord obtaining written consent from the landlord under the Prime Lease.
7.2 The sublease must be subordinate to and consistent with the Prime Lease.
8. Conditions to Sublease
8.1 Sublease is conditioned on:
☐ Satisfactory review of Subtenant financials
☐ Background/credit check (if applicable)
☐ Proof of insurance meeting Prime Lease requirements
☐ Executed landlord consent
☐ Final executed sublease
☐ Other: [Conditions]
9. Confidentiality and Exclusivity (Optional)
9.1 Confidentiality (Binding if checked): ☐ Yes ☐ No. If yes, the Parties will keep LOI terms confidential except as needed for landlord approval or professional advisors.
9.2 Exclusivity (Binding if checked): ☐ None ☐ Exclusivity until [Date], during which Sublandlord will not negotiate with other subtenants for the space described.
10. Target Timeline and Next Steps
10.1 Target date to circulate draft sublease: [Date].
10.2 Target date to sign sublease: [Date].
10.3 Target move-in date: [Date].
11. Governing Law (Optional)
11.1 This LOI is governed by the laws of [State/Country] for any binding provisions.
Signatures
By signing below, the Parties acknowledge the terms of this LOI.
Sublandlord (Tenant): [Tenant/Sublandlord Legal Name]
Name/Title: [Signer Name, Title]
Date: [Date]
Signature: ___________________________
Proposed Subtenant: [Subtenant Legal Name]
Name/Title: [Signer Name, Title]
Date: [Date]
Signature: ___________________________
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Letter of Intent to Sublease (Commercial) Template
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For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
LETTER OF INTENT TO SUBLEASE (COMMERCIAL) TEMPLATE FAQ
What is a letter of intent (LOI) to sublease?
A Letter of Intent to Sublease (Commercial) is a document that summarizes the main business terms of a proposed sublease (rent, term, space, use, deposits, expenses). It helps the parties align on key points before drafting a full sublease agreement.
Is a sublease LOI legally binding?
Often the business terms are non-binding and the parties only become bound when they sign the final sublease. However, some LOIs include binding sections (like confidentiality or exclusivity). This template lets you mark the LOI as non-binding and choose any binding sections if desired.
What should be included?
Include: space description, term and start date, rent, security deposit, utilities/CAM responsibility, permitted use, improvements, signage, landlord consent requirement, and conditions (credit approval, insurance, executed landlord consent). This template includes these essentials.
Does the landlord have to approve a sublease?
In most commercial leases, yes — written landlord consent is required. This LOI includes a clear condition that the sublease is contingent on landlord approval and compliance with the prime lease.
Should you attach a floor plan?
If the sublease is for part of the premises, a floor plan is strongly recommended. This template includes an exhibit option for a floor plan and space allocation.
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