Q4 Real Estate’s Craig Byers and Luke Rogers bring you another informational video featuring a short and simple overview of the commercial real estate lease process.
(Craig) Hey everyone this is Craig Byers with Q4 Real Estate and I am sitting here with a bright new face. This is Luke Rogers who is one of our newer agents here at Q4. Luke has actually been licensed and working for us for almost a year now. Luke welcome to the team!
(Craig) Luke is actually from the Iowa City area where he attended the University of Iowa and earned his business degree from the Tippie School of Business. We are happy to have him here helping us sell, lease and buy real estate.
(Craig) Now Luke and I are going to walk you through the leasing process and how the leasing process works. So lets get into it.
(Luke) What is the first step in the leasing process?
(Craig) So the first step in the leasing process I would say is to go and find a space that you need. This step includes scheduling showings with real estate brokers to go in to the space, to get comfortable with the space, whether you are going to be operating your office, retail or warehouse; just making sure you get in, boots to the ground and get comfortable in the space.
(Luke) What is a LOI Craig? (Craig) LOI stands for Letter Of Intent which is the second step of the leasing process. After you are comfortable in the space, the next step is usually to engage in the letter of intent process with the landlord. The LOI is where all the business terms and conditions are negotiated and agreed to such as how much the tenant will pay in rent, the duration of the lease term, and any other obligations and rights the landlord and tenant would have to one another.
(Luke) We have two documents here, a lease and an LOI. Can you tell me the difference between a lease and an LOI?
(Craig) The difference between a lease and an LOI is an LOI does outline all the business terms but it is not legally binding. The lease document is actually legally binding and lease documents are usually prepared and reviewed by attorneys. The terms and conditions set forth in the letter of intent are then implemented into the lease document. Once a lease document is signed, that legally binds tenant and landlord to one another. Perfect, and then you have a leased space. Great!
(Craig) If you have any other questions about the leasing process please give us a call at 319-294-3339, and ask for Luke Rogers or Craig Byers. Thank you!
(Luke) Thanks!
You can watch the informational video, Stepping Through the Lease Process below.
Try out our commercial lease calculator here.
For more helpful information check out our blog post titled: An NNN Lease Versus a Gross Lease: What’s the difference?
Let one of our knowledgeable listing agents partner with you to find a commercial real estate property perfect for your business needs, and assist you in working through the lease process. Contact Jason Rogers or Craig Byers today!
