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Lease Proposal Template

Proposal Expiration Date [EXPIRATION DATE]


This Lease Proposal document outlines the proposal terms for lease
of the premises described above to you, [TENANT NAME]
(Prospective Tenant), by [LANDLORD NAME] (Landlord). If you
are interested in proceeding, the full Lease Agreement will be
prepared and submitted to you for review and signature.
1. Term of lease Commencing on [BEGIN DATE] and ending on
2. Renewal option [RENEWAL OPTION]
Panda Tip: This is where you would note either a month-to-month tenancy
continuing after the initial term had passed, or perhaps automatically renewal for
the same length of term if no 30 day advance notice was given, or could indicate
that there are no renewal options at all.
3. Proposed usage [PROPOSED USAGE]
Panda Tip: Designate whether it is for office space, commercial use, retail, etc.
Both parties need to understand what the premises will be used for so they can
ensure that it is appropriate to the zoning and capacities of the facility.

Panda Tip: Dont forget that if you have an ongoing renewal option for a lengthy
lease, you need to decide whether to allow for increases in rent with renewals.
5. Security Deposit [SECURITY DEPOSIT]
6. Inclusions [INCLUDED ITEMS]
Panda Tip: This is where you should note items included in the rent, like
utilities, telephone, cable, internet access, and other expenses relating to ongoing
operations at the premises during the lease period. Anything obvious that is not
included, should be listed in the exclusions paragraph below.
7. Exclusions [EXCLUDED ITEMS]
Panda Tip: These are items of costs that are explicitly excluded as being part of
the rent, like utilities, telephone, cable, internet access, and other expenses
relating to ongoing operations at the premises during the lease period.
8. Assignment or subletting [ASSIGNMENT OPTION]
Panda Tip: Most leases either do not allow the Tenant to re-lease the premises to
someone else, or allow it only under certain terms.
9. Other items [OTHER ITEMS]
Panda Tip: This is the place to notate other terms that are likely to be important
to the Tenant in deciding whether to proceed to enter into a formal lease
10. Lease Agreement A formal, written lease agreement would
be executed between the Parties that would become the final
agreement between them.

If you are interested in proceeding to finalize a formal, written Lease

Agreement under the scope set out above, please contact [CONTACT
NAME] at [CONTACT PHONE] OR [CONTACT EMAIL] at your earliest
possible convenience.
This Lease Proposal does not constitute a contract, or an offer
to contract, but rather an invitation to proceed with further
actions by the Parties towards execution of a formal
agreement between the Parties.
Panda Tip: This paragraph is important because of basic contract law. If this is
an offer, the proposed tenant could just accept the terms above (such as by
calling up and saying yes, I agree or mailing a letter doing the same) and a
binding contract would be created. The intent here is rather to move negotiations
along, with a final, more detailed document being signed by the parties as the
actual contract.