💼 Business
Commercial Lease Letter of Intent Comparison for Small Business Tenants: Side by Side Terms, Net Effective Rent Math, Guaranty and Exclusive Use Risks, and a Counter Proposal
Compare two or three landlord letters of intent for retail, restaurant, or office space side by side: base rent and escalations, free rent, tenant improvement allowance, CAM estimates, personal guaranty, exclusive use, and contingencies, with net effective rent worked out from your numbers and a counter proposal for the space you prefer.
0Reviews
Prompt
Act as a tenant representation broker who helps small business owners compare landlord letters of intent before a lease is drafted, shows the rent math step by step, and points out the terms that cost the most later. Inputs: - Each LOI's key terms pasted or summarized: premises size, base rent per square foot, escalations, lease type (NNN, modified gross), term, free rent, TI allowance, CAM and tax estimates, security deposit: [LoiTerms] - Non money terms from each LOI: personal guaranty, exclusive use, permitted use, delivery condition, renewal options, assignment and subletting, signage: [LoiConditions] - The business and how it uses the space (restaurant needing a hood and grease trap, salon, retail, office): [BusinessUse] - The build out budget estimate from a contractor, if any: [BuildOutEstimate] - Must haves and deal breakers: [MustHaves] - Output format: [Format] Generate: 1. A side by side comparison table of every commercial lease letter of intent, built from LoiTerms and LoiConditions, one column per LOI. 2. Rent math for each LOI: base rent by year with escalations, total base rent over the term, free rent value, TI allowance total, and net effective base rent per square foot per year, showing each calculation. 3. An occupancy cost line for year one: base rent plus estimated CAM and taxes per LOI. 4. A build out gap from BuildOutEstimate: TI allowance versus cost, and what the tenant pays out of pocket. 5. A risk table of non money terms: personal guaranty scope, missing exclusive use, delivery condition that leaves work for the tenant, permit contingency, and assignment limits, rated for BusinessUse. 6. A MustHaves check marking which LOI meets each item. 7. A recommended letter of intent and a counter proposal list for small business tenants with specific asks in priority order. 8. Questions to ask the landlord and items for an attorney to review before signing anything. Constraints: - Use only the numbers in LoiTerms and BuildOutEstimate; show the math and round to cents only at the end. - Note that an LOI is usually non binding except where it says otherwise, and flag any binding clauses. - Not legal or tax advice. Plain broker tone. No em dashes.
Instructions
Replace every [bracket] with your details before running. Works on ChatGPT, Claude, and Gemini.
Generated Output
This image was generated using the prompt above.
Examples
Example Input
LoiTerms: LOI A (Maple Plaza): 2,400 sf, $32.00/sf/yr NNN, 3% annual increases, 5 year term, 4 months free base rent, TI allowance $40/sf, CAM and taxes estimated $9.00/sf/yr, deposit 2 months LOI B (Riverside Commons): 2,100 sf, $36.00/sf/yr NNN, increases of $1.00/sf each year, 5 year term, 2 months free base rent, TI allowance $25/sf, CAM and taxes estimated $7.50/sf/yr, deposit 1 month LoiConditions: A: personal guaranty for full term; no exclusive use offered; delivered in shell condition; one 5 year renewal at 95% of market B: personal guaranty capped at 12 months of rent, burns off after year 3; exclusive for coffee and espresso drinks; delivered with HVAC in working order; two 5 year renewals at 3% over last year's rent; permit contingency of 90 days BusinessUse: specialty coffee shop with a small kitchen, no hood needed BuildOutEstimate: $105,000 for either space MustHaves: exclusive on coffee, guaranty that does not last the full term, open within 6 months Format: terms table, rent math, year one occupancy, build out gap, risk table, must haves, recommendation and counter, questions
Example Output
1) TERMS TABLE | Term | LOI A Maple Plaza | LOI B Riverside Commons | | Size | 2,400 sf | 2,100 sf | | Base rent | $32.00/sf NNN | $36.00/sf NNN | | Increases | 3% a year | $1.00/sf a year | | Free rent | 4 months | 2 months | | TI allowance | $40/sf | $25/sf | | CAM and taxes | $9.00/sf est. | $7.50/sf est. | | Guaranty | Full term | 12 months rent, burns off after year 3 | | Exclusive | None | Coffee and espresso drinks | | Delivery | Shell | HVAC working | | Permit contingency | None | 90 days | 2) RENT MATH LOI A: Year 1 2,400 x $32.00 = $76,800.00. Years 2 to 5 at 3%: $79,104.00, $81,477.12, $83,921.43, $86,439.08. Total $407,741.63. Free rent 4/12 x $76,800 = $25,600.00. Net base rent $382,141.63. TI 2,400 x $40 = $96,000.00. Net of TI $286,141.63, divided by 2,400 sf and 5 years = $23.85/sf/yr. LOI B: Years at $36 to $40: $75,600, $77,700, $79,800, $81,900, $84,000. Total $399,000.00. Free rent 2/12 x $75,600 = $12,600.00. Net base rent $386,400.00. TI 2,100 x $25 = $52,500.00. Net of TI $333,900.00, divided by 2,100 sf and 5 years = $31.80/sf/yr. 3) YEAR ONE OCCUPANCY (before free rent) A: $76,800 + 2,400 x $9.00 ($21,600) = $98,400.00 B: $75,600 + 2,100 x $7.50 ($15,750) = $91,350.00 4) BUILD OUT GAP A: $105,000 minus $96,000 = $9,000 out of pocket. B: $105,000 minus $52,500 = $52,500 out of pocket. 5) RISK TABLE | Risk | A | B | | Guaranty | High: full 5 years on you personally | Lower: capped, burns off | | Competition | High: landlord can lease to another coffee shop | Protected | | Delivery | Medium: shell adds HVAC and timeline risk | Lower | | Permits | High: no out if permits fail | Protected for 90 days | 6) MUST HAVES Exclusive on coffee: B only. Limited guaranty: B only. Open within 6 months: B more likely given HVAC and permit terms. 7) RECOMMENDATION AND COUNTER Recommend B. A is cheaper on paper, but it misses two must haves. Counter to B in this order: 1. TI allowance from $25 to $35/sf. 2. Free rent from 2 to 4 months. 3. Guaranty burn off after year 2. 4. CAM cap of 5% a year on controllable expenses. 8) QUESTIONS AND ATTORNEY REVIEW - What is in the B CAM estimate, and what were actual CAM costs last year? - Does the exclusive cover a bakery that sells drip coffee? - Attorney: confirm which LOI paragraphs are binding, such as confidentiality or exclusivity of negotiation.