LOI Mistakes That Slow Deals — and How to Avoid Them

The LOI’s Crucial Role

A Letter of Intent (LOI) is more than a courtesy—it’s the framework for a future lease. Though non-binding, it shapes expectations, outlines economics, and sets the tone for the working relationship ahead. When crafted with care, an LOI streamlines negotiation and accelerates occupancy. When rushed or incomplete, it invites confusion, legal back-and-forth, and costly delays that frustrate everyone involved.

Be Clear, Not Clever

The most common LOI pitfall is vagueness. Every essential element—rent structure, term length, options, signage rights, and delivery conditions—should be clearly defined. Ambiguity leaves room for misinterpretation once attorneys become involved. Landlords and tenants save significant time by writing plain, concise language rather than relying on industry shorthand that may read differently to each party.

Address the Details Early

Operational requirements often derail progress if they surface too late. Restaurant operators need grease traps and ventilation; fitness users require high ceilings and soundproofing; medical tenants need plumbing and accessibility upgrades. Identifying these needs during the LOI stage ensures feasibility and accurate cost allocation before formal lease drafting begins. Up-front clarity minimizes renegotiation later.

Establish Realistic Timelines

An LOI without deadlines is a stalled deal waiting to happen. Including mutually agreed-upon dates for feedback, attorney drafts, and execution keeps momentum alive. Clear timelines also demonstrate professionalism and accountability—qualities that reassure tenants their landlord is organized and engaged.

Collaboration Over Confrontation

The best LOIs are collaborative. When brokers, tenants, and landlords work transparently, they build trust before the lease is even signed. Open communication turns potential obstacles into opportunities for problem-solving, fostering smoother build-outs and stronger long-term relationships.

Connecting It Back to Milbrook Properties

Milbrook Properties emphasizes precision and teamwork from the earliest negotiation stage. By drafting comprehensive, transparent LOIs and encouraging open dialogue among all parties, Milbrook reduces delays and sets a professional tone that carries through the life of each lease—ensuring faster openings and more productive tenant partnerships.