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But, before submitting an LOI there are a few things you want to consider. First of all, don’t put all your eggs in one basket. Try to keep a couple of other locations in mind so you are prepared in case the negotiations don’t go through. Also, make sure you are working with a commercial leasing agent who understands your individual situation and will keep your best interest in mind during the negotiations.

Once you find a location that you think will work, it is time to begin negotiations with the landlord to determine if the site will work for your new business. In order to begin the negotiations you will need to submit an LOI to the landlord, which signifies to them that you are seriously interested in leasing the space. For commercial leasing, an LOI’s primary function is to facilitate faster negotiations of a lease.

Typically, LOIs are much shorter than the text of the actual lease. They contain much of the same basic information as the lease will, but in a shorter easier to read format. The LOI should include an extensive list of desired terms including monetary terms deal contingencies, timing/scheduling, specified form of documentation, and who will prepare the documentation. You also want to include details on the financial situation of the site location. You want to make sure all expected costs are outlined as well as financial incentives such as free rent, or structural upgrade allowances.

It is important that you remain patient during the lease negotiation process. It can take weeks for a landlord to review an LOI, and just because you did not hear immediately back from a landlord does not mean you did not get the site. During the negotiations keep in mind that you will be running your business from this location so you want to make sure that all of your needs are met.