letter of intent After space is identified, the landlord and tenant typically prepare a Letter of Intent (LOI), a non-binding letter agreement setting forth the agreed upon material lease terms. In the case of a green lease, the material sustainability terms should be included in the LOI. Best practice is to have an exhibit to the LOI that includes all technical sustainability standards and/or certification credit requirements associated with the premise’s build-out and the ongoing operation of both the tenant space and the building. Including these terms as an exhibit to the LOI allows for sustainability issues to be dealt with separately from the rest of the lease terms. Once negotiated, the sustainability conditions can then be used as an exhibit to the lease itself, making the standards readily accessible and easily referenced.
To assist in drafting an LOI, view a sample Due Diligence Scorecard from the California Sustainability Alliance online here. |