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Lease Proposal

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Looking for a Lease Proposal template? Our template sets out basic commercial terms and conditions to help both lessor and lessee prepare for the proposed leasing arrangement. Save time and hassle with our customisable template.

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Document Description

This Lease Proposal template outlines the basic commercial terms and conditions for an early stage leasing arrangement between a landlord and tenant. The lease term will be for a specified number of years with a predetermined rent schedule and NNN expenses. The tenant is responsible for any additional improvements to the premises at their own cost, while the landlord is responsible for the replacement of carpet and painting of the walls. The tenant will be required to provide a prepaid rent and security deposit, and will be permitted to use all the parking stalls at the property. Tenant's signage must comply with local laws and be approved by the landlord.

This template allows for the landlord and tenant to negotiate and come to an agreement on the terms of the lease agreement. It is not binding until the lease agreement and related documents have been approved and fully executed by both parties. The landlord is represented by a licensed real estate broker who provides disclosure and receipt of the “Law of Real Estate Agency” pamphlet as required by law. If the terms and conditions meet with the tenant's approval, they may execute the proposal and return it to the landlord within 15 days.

Using this Lease Proposal template saves time and hassle, providing a customisable framework for negotiating the terms of the lease agreement. It covers the essential aspects of a commercial lease agreement, including rent, expenses, improvements, and signage. The SEO-friendly keywords included in this summary are Lease Proposal template, Lessor terms and conditions, Commercial lease agreement, Early stage leasing, Lease negotiation, Commercial property lease, Basic lease terms, Customisable lease template, Lessor-lessee agreement, and Lease preparation.

How to use this Document? 

Steps to Use this Lease Proposal Document:

1. Introduce the document: Begin by addressing the recipient, who could be a potential tenant, with a polite and professional greeting.

2. Present the Proposal: As the landlord or representative, present the non-binding lease proposal for the recipient's consideration. The proposal should outline the proposed lease agreement's essential terms and conditions, including the lease term, rent schedule, base rent abatement, operating expenses, tenant improvements, prepaid rent and security deposit, permitted use, parking, signage, and representation.

3. Specify the Parties Involved: Identify the parties involved in the proposed lease agreement by providing their names and roles.

4. Explain the Lease Term: Clearly define the lease term, including its duration, start date, and any other critical timelines.

5. Outline the Rent Schedule: Clearly outline the rent schedule, including the base rent, any additional expenses, and any scheduled increases.

6. Explain the Base Rent Abatement: Explain the period of base rent abatement and how it can benefit the tenant.

7. Detail the Operating Expenses: Explain how the operating expenses will be handled and the tenant's responsibility to pay for their pro-rata share.

8. Detail the Tenant Improvements: Explain what tenant improvements are expected, who is responsible for completing them, and any associated costs.

9. Discuss Prepaid Rent and Security Deposit: Explain the prepaid rent and security deposit requirements and what they cover.

10. Outline Permitted Use: Clearly outline what the permitted use for the property will be.

11. Explain Parking and Signage: Explain what parking options are available and any signage requirements or allowances.

12. Specify Representation: Identify who is representing the landlord in this transaction and what their role is.

13. Clarify the Non-Binding Nature of the Proposal: Explain that the proposal is not binding until a lease agreement and related documents have been prepared, approved, and fully executed by both parties.

14. Request Acknowledgement and Agreement: Request that the recipient acknowledge and agree to the terms and conditions by executing the document and returning it within a specified timeframe.

15. Close the Document: Close the document by thanking the recipient for their time and consideration and providing your contact information should they have any questions.

In summary, this lease proposal document provides a framework for the initial stages of a commercial leasing arrangement. By including essential terms and conditions in a non-binding form, both the landlord and tenant can prepare for the proposed arrangement, minimising risks for both parties. When using this document, be sure to include all the necessary details and clearly explain all terms and conditions to avoid any misunderstandings.


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