Letter of Intent (LOI)

A Letter of Intent (LOI) is a formal document outlining the preliminary agreement between two or more parties regarding a potential business transaction or partnership. It typically includes key terms and conditions of the proposed deal, such as the purchase price, timeline, and any other important details. While not legally binding, an LOI serves as a roadmap for the parties involved to negotiate and finalize a more formal agreement, such as a contract. It demonstrates a serious commitment to moving forward with the transaction and sets the foundation for further discussions and due diligence.

Letter of Intent (LOI) is a key concept that affects property valuation, financing decisions, and investment returns in the triple net lease market. Understanding Letter of Intent (LOI) helps investors make informed acquisition and management decisions.

Letter of Intent (LOI) directly influences how commercial properties are valued, financed, and traded. Changes in Letter of Intent (LOI) can impact cap rates, NOI calculations, and overall investment performance for net lease properties.

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General and for orientation only. How any of this applies to a specific property, lease or transaction is a question for your own advisors. Ask about a property.