We’ve all been there: you find the perfect spot, you’re excited, and the landlord sends over a Letter of Intent. It feels like a big step, almost like the deal is done. But how much of that LOI actually locks things in? This question comes up a lot for us, especially when we’re approaching a renewal or eyeing a new location, and a recent article really clarified what’s binding and what isn’t.

The key takeaway is that most of those big business terms we focus on – like rent, term length, and build-out allowance – are generally non-binding in an LOI. That’s good news because it means we usually have room to negotiate further when the actual lease comes around. However, some specific provisions *can* be made binding if they're explicitly stated as such. Think about things like confidentiality clauses, agreements to negotiate exclusively for a certain period, or who pays for specific due diligence costs. These are the details that, if binding, could create obligations even if the full lease never materializes. It’s a crucial distinction to grasp before you sign on that dotted line.

Understanding which parts of an LOI carry legal weight is essential for protecting ourselves. It means we need to read every line carefully and, if possible, have a lawyer review it before committing. Don't assume anything is just a formality. Knowing what’s locked in and what’s still open for discussion can make a huge difference in our negotiating power. Have you had an experience where an LOI provision caught you by surprise? Share your stories in the forum – we learn so much from each other’s insights.