Property Management

What is a 'letter of intent' (LOI) in a Delaware commercial leasing negotiation?

AA binding lease agreement in simplified form
BA non-binding preliminary document outlining the key terms both parties intend to negotiate into a formal lease✓ Correct
CA formal notice of the tenant's intent to terminate the lease
DA formal intent to purchase rather than lease the property

Explanation

A letter of intent (LOI) is typically a non-binding document in commercial leasing that outlines the key terms (rent, term, TI allowance, renewal options) that the parties intend to negotiate into a formal lease agreement.

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