How To Write A Business Letter Of Intent To Rent Or

Lease A Space
This article is posted under Business, General Information.
If you’re interested in putting up a business inside a mall, the first thing that the mall
administration will ask you to submit is the Letter of Intent (LOI).
A Letter of Intent is not a document we often see that’s why a good number of people don’t
know what to write inside it.
Some might also ask, how should it be written? Or, is there a correct template or layout for
making a Letter of Intent?
Before I give you the answer to these questions, let me first tell you what a Letter of Intent is.
According to Wikipedia:
A Letter of Intent or LOI is a document outlining an agreement between two or more parties
before the agreement is finalized. The concept is similar to the so-called heads of agreement.
Such agreements may be Asset Purchase Agreements, Share Purchase Agreements, Joint-
Venture Agreements and overall all Agreements which aim at closing a financially large deal.

That really sounds so formal, don’t you think? However, there’s really no reason for you to
be afraid of getting your LOI wrong.
Although it does usually resemble a contract, it is most of the time, non-binding and is just
issued to initiate a formal business transaction.
For renting or leasing a space inside a mall or other commercial space, a Letter of Intent
would contain the following information:
• A statement saying your intent to lease a space inside the mall.
• A description of your business including it’s basic concept, the business model it
follows and a brief background and history.
• A list of your products and services which should include pricing, merchandise
packaging design and a description of your target market.
• Your space, utilities and manpower requirements including the types of equipment
you’ll be using and the number of employees you’ll have.
• If there’s any, it would also be good to show pictures of your other branches or stores.
• Your contact details and the best schedule for you to have a meeting
Before writing your Letter of Intent, it might also help to you ask the administration if they
have an LOI template that you can just follow. They could provide samples that was
submitted to them by past lessees. If not, do ask them what specific details they need stated
in your LOI.
Lastly, to help you with writing your Letter of Intent, here’s a very simple LOI template
which you can use:
Ms. Maria dela Cruz
Zone Administrator
ABC Mall
Dear Ms. dela Cruz,
XYZ Foods would like to present this Letter of Intent to signify our interest in leasing a
commercial space inside ABC Mall.
We are the business behind the food cart, W Burgers, which has been selling gourmet
hamburgers since 2004. Our products include a variety of hamburger sandwiches and burger
rice meals. We also sell ice cold beverages. Currently, our burger sandwiches and rice meals
sell for P80 each. Our clients are usually young professionals who order our food as packed
meals for lunch or dinner.
The W Burger food cart that we plan to put up would require at least 6 square meters and a
power outlet for a cash register, a small freezer, a rice cooker, a soda vendo machine and a
gas operated frying griddle. The food cart would be manned by two employees.
We already have 5 branches located in various commercial areas in the city but this is our
first venture in putting up a branch inside a mall. Attached are the photos of our existing
branches.
We believe that our food cart compliments the business concept of ABC Mall because we
cater to the same target market. Thus, we would appreciate it if you could contact us at 555-
0921 during office hours from Mondays to Thursdays, so we can set up a meeting to discuss
this further and possibly come up with a formal business agreement.
Thank you very much.
Respectfully,
Mr. Pedro Reyes
Sole Proprietor
XYZ Foods – W Burgers
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References:
Wikipedia, The Free Encyclopedia. “Letter of Intent“. April 14, 2009
———
Photo courtesy of Svadilfari
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5 Responses to “How To Write A Business Letter Of Intent To Rent Or Lease

A Space”

1.
Christian on May 15th, 2009 at 2:17 am
A letter of intent is as essential tools for investing. It’s a great way to break the ice on
a negotiation. It’s always surprising how few people use them! I know if a potential
 client is talking about it, it’s probably a safe bet that this is not their first time around
the block

Noteworthy though…a letter of intent can be much longer than this also, and I highly
encourage anyone using one to still have it drafted by your attorney. ESPECIALLY
the simple stuff…that’s where it’s easy to screw things up!

2.
Fitz on May 19th, 2009 at 10:58 am
Hi Christian, thanks for sharing your thoughts regarding Letter of Intents. I agree, it
can be much longer than this and an attorney’s input can be invaluable.

3.
wilma manzanillo, dpwh, legal section on July 21st, 2009 at 2:54 pm
Although I did final drafts of letter of intent at Department of Public Works and
Highways, in aid to contractors, I still need templates for confidence and format plus
other factors.
Today, i do for ricemiller NFA santiago city, isabela, city of Amy Navarro.

4.
bernard enriquez on October 28th, 2009 at 3:39 pm
pls. help me to Write A Business Letter Of Intent To Rent A Space, im planning to
put up a internet cafe, so pls. give me a sample of LOI, tnx so much…

5.
alds on December 8th, 2009 at 12:04 pm
Hi Fitz! Thanks a lot for this very useful template. Saved me a lot of time and
searches on the internet.
I’m planning to start a foodcart business (yehey!). Most of the templates I see on the
internet are more legal in tone and are geared for purchasing. Not only is your
template specific for leasing space, but yours is more conversational, practical, and
easy to customize.
I will check your site and see what I can learn.
Thanks again!