I understand there are time exigencies in these deals, but deals take time. I understand there are time exigencies in these deals, but deals take time. On the landlord side, it is helpful to keep the tenant involved with the progress of other deals in the building. For example, if a private placement or financing is pending during lease negotiations, the success of the placement may result in a substantial influx of cash, with the likelihood of further hiring and expansion. Another idea is to dispense with the negotiation of a lengthy letter of intent.
Letters of intent can take more than a month to negotiate and are generally nonbinding in any event.
The parties can either agree verbally on terms and go directly to leases, or agree to a short term sheet that sets forth only the important business terms before commencing lease negotiations. Back to TOP 2. Some landlords have accepted warrants or other equity in their tenants in lieu of security deposits or letters of credit. The rationale is that if the landlord is taking risk by advancing costs and leasing space to a fledgling enterprise, the landlord should share in the potential return if the tenant's business is successful. So a key issue for negotiation is how long the landlord must wait before it can liquidate its equity interest.