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How to Negotiate Commercial Leases That Favor Tenants

Part 4: Sample Offer or Counter Offer Letter to Lease Commercial Space


How to Write an Offer or Counter Offer Letter

The following is sample letter that can (and should) be revised to use as either an initial offer, or counter offer to lease a commercial space for your business. It is not intended to serve as a substitute for legal advice, but simply to show one way you can express interest in leasing a particular space.

Information in bold should be substituted with your own information and leasing terms.

(Insert Today’s Date)

(INSERT Name of Landlord or Listing Agent)
Ms. Happy Landlord
123 Street
Suite Z
City, State, Zip Code

Dear Ms. Landlord;

This letter is to express interest on behalf of (INSERT name of your business), in leasing the property located at: (INSERT complete address including street address, unit or suite number, city, state, and zip code).

(INSERT name of your business) is a (INSERT type of business you own – LLP, partnership, sole proprietorship, etc.) that (INSERT brief statement about what your business does).

(INSERT name of business) has been in operation since (INSERT start date or number of years in business). Due to exciting growth, we need larger (or, additional, more suitable, etc.) facilities.

(Note: even if you work from home do not offer this in your proposal letter. Try to avoid offering in this initial contact that you have a home-based business – it may make you sound small and unstable to a landlord.)

After carefully evaluating fair-market value I (we) propose the following terms for your consideration:

LIST ALL TERMS HERE including length of lease, renewal options, rent, added fees, type of lease, annual increases, etc. Anything you want to include or address in the lease detail in this paragraph. Be sure to include any renovations or repairs you want or need the landlord to make to the space, or that you would do yourself. Ask for free rent, furniture, extra parking – anything you might need to make the space work best for your business.

I am excited at the prospect of leasing the above-mentioned space and feel that (INSERT Name of Business) would be an asset to you. If you have any questions about this proposal of leasing terms, or out business, please contact me at (INSERT phone number and best time call), or by email at: (INSERT your email address).

Thank you for taking the time to consider this offer. I look forward to a prompt and favorable reply.

Respectfully submitted,

(leave 2-3 blank lines for signing your name in ink)

(INSERT Your Name – initial caps)
(INSERT Your Title – initial caps)

Note: If you include any attachments, or copy anyone else, the preferred way to show that in a business letter is after your signature, like this, and in this order:

Respectfully submitted,

(leave 2-3 blank lines for signing your name in ink)

(INSERT Your Name – initial caps)
(INSERT Your Title – initial caps)

Enclosures: (List more than one on separate lines, indented)

cc: Jennifer Barnes, Listing Agent

How to Format The Second Page of a Business Letter

If your letter is longer than one page, the standard business letter format to start the second page is like this:

Today’s Date
Page Two

Then skip two to three blank lines and pick up where the letter begins for page two.

How to Deliver An Offer Letter

You can mail your offer letter, hand-deliver it, or send an email with an attachment that contains the offer letter.

Tips on Writing Your Offer Letter

  • Remember that this is a business letter. Keep it clean, simple, and to the point but do not be afraid to use meaningful “selling points” to help win over a landlord.

  • Avoid using humor, slang, or offering personal feelings about politics, religion, or any other subject that is not related to the purpose of the letter (to make an offer).

  • Do not use scented or “frilly” stationery. Your paper should be white, letter-sized and without borders, or your usual company letterhead.

  • Mail the letter in a plain white business-sized envelope. Do not over fold to fit the letter into a smaller envelope. If your letter contains more than seven pages including attachments, use a flat, 8-1/2 x 11” envelope instead. Make sure to include a return address in the top, left-hand corner of the envelope, and make sure you have put enough postage on the envelope!

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