BreakThru Realty

Guide

From Letter of Intent to Signed Lease: How Long It Takes

A commercial lease is negotiated in two stages: a short letter of intent that settles the business terms, then the lease itself, drafted by the landlord's attorney and reviewed by yours. From first tour to keys usually takes two to four months, longer with a build-out or a permit, and most of the delay is avoidable.

Ask a Commercial Specialist · (786) 914-1017

BreakThru Realty · Founder and Broker of Record: Tyson E. Sam, Florida License 3565210

The Letter of Intent

A one- or two-page, usually non-binding summary of the deal: the space and its rentable square feet, the term, the commencement date, base rent and increases, the lease type and the nets, free rent, the improvement allowance or turnkey scope, renewal and expansion options, the deposit and any guarantee, exclusive use, signage, parking and who pays the brokers. Settling these before lawyers are involved saves weeks and money.

The Lease

The landlord's attorney drafts the lease from the LOI, usually on the landlord's form, and the tenant's attorney marks it up: assignment and subletting, default and cure periods, relocation and demolition clauses, holdover, the CAM definitions, insurance, the condition of delivery. Two or three rounds is normal. A Florida real estate attorney is not optional; a commercial lease has few of the protections a residential tenant has.

Delivery, Build-Out and Opening

The lease sets a delivery condition and date; rent usually starts a set number of days after delivery or on opening. Build-out needs permits, and a change of use (a restaurant into a former shop) can need zoning approval and a new certificate of use. Start the permit process the day the LOI is signed, not the day the lease is.

A Typical Timeline

Defining the requirement and touring: two to four weeks. Proposals and the LOI: one to three weeks. Lease negotiation: three to six weeks. Permits and build-out: one to four months depending on scope. A tenant representative keeps each stage moving and knows which landlords are slow.

Ask a Commercial Specialist

Call or text (786) 914-1017 or email sales@breakthrurealty.com. A licensed BreakThru Realty agent follows up within one business day.

Frequently Asked Questions

Is a letter of intent binding?
Usually not, apart from confidentiality and sometimes exclusivity, and it should say so. It is a negotiating tool. The lease is the contract.
When does rent start?
As the lease says: on delivery, a fixed number of days after delivery to allow build-out, or on opening. Negotiate the commencement date against the build-out the space needs.
Who pays the tenant's broker?
In most Florida commercial leases the landlord's listing agreement provides a commission that is shared with the broker who brings the tenant. It is agreed in writing before the search starts.

Commercial Services

Calculators

Commercial Guides

Commercial Real Estate