Letter of Intent to Lease
New Jersey commercial premises — draft for discussion
This is a template, not legal advice. Have a New Jersey attorney review it before you send, sign, or rely on it. Except for any Binding Provisions you chose below, this letter is not a contract to close the deal.
November 10, 2026
To: Example Landlord LLC
Re: Non-binding letter of intent to lease — 100 Example Road, Fairfield, NJ 07004 (illustrative address, not a real listing)
Dear Example Landlord LLC:
Example Tenant LLC is writing to set out proposed terms for a lease of the premises described below. Except for the Binding Provisions identified below, this letter is not a lease and is not a contract to enter into a lease. Neither party is required to keep negotiating or to sign a definitive lease. A binding lease exists only when both parties have signed and delivered a written lease agreement.
- Parties. Example Tenant LLC ("Tenant") proposes to lease from Example Landlord LLC ("Landlord").
- Premises. The premises are approximately 20,000 square feet at 100 Example Road, Fairfield, NJ 07004 (illustrative address, not a real listing). A definitive lease would attach a plan or a more precise legal description if the parties need one.
- Use. Warehousing, distribution, and related office (illustrative).
- Term and commencement. The proposed term is 5 years (illustrative). The proposed commencement is June 1, 2027, or another date the parties agree in the lease (illustrative).
- Base rent and type. Proposed base rent is $15.95/SF/year (illustrative; Newmark 3Q 2026 Route 280/Suburban Essex average asking rent, not a quote for this address), quoted as triple-net (NNN), meaning Tenant would pay base rent plus Tenant's share of taxes, insurance, and common-area maintenance as a definitive lease would provide.
- Escalations. 3% once each year (illustrative, not a market standard)
- Free rent. Two months of base rent (illustrative)
- Tenant improvement allowance. $10 per SF, used for Tenant's work, unused amounts forfeited (illustrative)
- Taxes, insurance, and CAM. Tenant would pay its share of real estate taxes, insurance, and CAM on a NNN basis, as a definitive lease would provide (illustrative).
- Security deposit. Two months' base rent (illustrative)
- Renewal options. One option to renew for five years at then fair-market rent, to be defined in the lease (illustrative)
- Contingencies. Attorney review; Tenant's inspection of the premises during the exclusivity period.
- Broker. AcreX Realty LLC, if engaged under a separate written agreement is identified as a broker in connection with this proposal. Any commission would be set only in a separate written agreement. In New Jersey commissions are negotiable. Licensure does not imply endorsement.
- Binding Provisions. The only provisions intended to be binding are: confidentiality; exclusivity (no-shop); the governing-law and forum sentence in this paragraph. Each party would keep confidential the non-public information received from the other in connection with this proposal, and would use it only to evaluate the possible lease, except for information that is public, already known, independently developed, or required to be disclosed by law. This confidentiality obligation is proposed to survive until one year after this letter expires (illustrative period). During the exclusivity period (until this letter expires (illustrative)), Landlord would not solicit or enter into a letter of intent or a lease with another tenant for the same premises, except that this would lapse when this letter expires or is withdrawn in writing. The parties propose that New Jersey law govern the Binding Provisions, and that any dispute arising out of those provisions be brought in the New Jersey state courts of the county where the property is located. All other numbered paragraphs are proposed terms only. They are not binding and are subject to a definitive written lease signed and delivered by both parties.
- Expiration. If a definitive lease has not been signed and delivered by November 24, 2026, this letter expires and, except for any confidentiality obligation that is stated to survive, neither party has further obligations under it. The parties may extend the date in a writing signed by both.
- Non-binding character. Except for the Binding Provisions in the paragraph above, this letter is not a lease, is not an agreement to enter into a lease, and does not create a duty to negotiate in good faith or otherwise. Either party may end discussions at any time, for any reason or for no reason, subject only to those Binding Provisions. A court may still look at the whole document and at the parties' conduct. This is a template. Have a New Jersey attorney review it before it is signed or relied on.
If these proposed terms are acceptable as a basis for drafting, please sign a copy of this letter where indicated, as to the Binding Provisions (if any) and otherwise as a non-binding expression of interest, and return it before it expires.
Proposed by (Tenant):
Example Tenant LLC
Date: ______________
Acknowledged by (Landlord):
Example Landlord LLC
Date: ______________
AcreX Realty LLC, Licensed Real Estate Broker #2550575 · Jonathan Libock, NJ #1757237. Licensure does not imply endorsement. In New Jersey commissions are negotiable. This template was generated on acrex.co as a draft for discussion. It is not a definitive lease or purchase agreement and is not legal, tax, or environmental advice.