LETTER OF INTENT - SINGLE-TENANT LEASE (TEXAS)

1. PARTIES / PREMISES

• Landlord: [NAME]
• Tenant: [NAME]
• Premises: [ADDRESS/BUILDING/SF]; Parking: [STALLS/RIGHTS]

2. TERM / COMMENCEMENT

• Term: [X] years; Commencement: [DATE/CONDITION]; Rent Commencement: [DATE/CONDITION].

3. RENT

• Base Rent: $[AMOUNT]/[SF/MONTH/YEAR], with escalations of [X]% annually.
• Additional Rent: NNN / Modified Gross / Full Service (circle one); estimated NNN: $[AMOUNT]/SF.
• Texas tax items: define base year and escalation method; address real property tax increases, special assessments, and allocation of tax protest rights and costs.

3A. RENT COMMENCEMENT / LATE DELIVERY

• Rent Commencement tied to: [ ] Delivery of Premises [ ] Substantial Completion of Landlord Work [ ] Permit/CO [ ] [OTHER].
• If delivery delayed beyond [OUTSIDE DATE], Tenant receives: [___] Abatement of Base Rent equal to [X] days per day of delay [ ] Termination right after [CURE WINDOW].
• Fixturing/Free Rent period: [DAYS] post-delivery.

4. TI / LANDLORD WORK

• Tenant Improvement Allowance: $[AMOUNT]/SF; Delivery condition: [SHELL/BUILT-OUT]; Plans/approval timeline: [DETAILS].
• Landlord Work: [SCOPE] with substantial completion by [DATE].
• Code compliance: Allocate responsibility for code compliance, life safety systems, and certificate of occupancy updates.

5. USE / EXCLUSIVES

• Permitted Use: [DESCRIBE].
• Exclusivity (if any): [DETAILS]; co-tenancy or operating covenants: [DETAILS/"NONE"].

6. OPTIONS

• Renewal: [X] options of [Y] years at [FMV / preset escalations].
• Expansion/ROFR/ROFO: [DETAILS/"NONE"].
• Go-Dark / Radius (if retail): [ ] No go-dark [ ] Limited go-dark with notice and recapture; [ ] Radius restriction within [MILES] for [USE].

7. SIGNAGE

• Building/monument signage rights: [YES/NO]; specifications subject to approval/law.

8. ASSIGNMENT/SUBLETTING

• Standard landlord consent not to be unreasonably withheld; transfers to affiliates permitted if [CONDITIONS].

9. INSURANCE/INDEMNITY

• Standard commercial lease insurance; mutual indemnities; waivers of subrogation.

10. PARKING / COMMON AREAS

• Parking rights and any charges; common area maintenance obligations.

11. BROKERS

• Brokers: [NAMES] with commissions per separate agreement. Each party indemnifies for other brokers.

12. BINDING TERMS

• Binding: (a) exclusivity period through [DATE]; (b) confidentiality; (c) broker indemnity; (d) governing law/venue; (e) expenses.
• Non-Binding: All other provisions until execution of a definitive lease.

13. TIMELINE

• Draft lease due: [DATE]; Comments: [DATE]; Target execution: [DATE]; Delivery: [DATE].

14. FMV RENEWAL MECHANICS (IF FMV)

• FMV determined by: [ ] Agreement of parties [ ] Brokers [ ] Appraisal baseball arbitration; exclude tenant-specific value, sale-leasebacks, and submarket anomalies.

15. CONFIDENTIALITY

• Terms confidential except to advisors/lenders as needed.

16. GOVERNING LAW / VENUE

• Governing law: Texas; venue: [COUNTY], Texas.

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ACCEPTED AND AGREED (non-binding except as stated):

LANDLORD: ______________________ TENANT: ______________________
By: ______________________________ By: ___________________________
Name/Title: ______________________ Name/Title: ___________________
Date: ____________________________ Date: _________________________
[// GUIDANCE: Confirm allocation of property tax protest rights and audit rights for operating expenses. Consider environmental representations, SNDA/estoppel obligations, and any zoning/use approvals required.]