The stretch between a signed letter of intent and a fully executed lease is where commercial deals quietly live or die. The LOI feels like the finish line, but it is really the starting gun for the legal negotiation that turns agreed business terms into a binding document. This guide zooms into just that window, what happens, who does what, and where it slows down. For the full deal timeline from first tour to occupancy, see the guide on how long a commercial lease takes to close, which this piece is a deep dive within.
A letter of intent captures the key business terms, rent, term, allowances, the major points, but it is typically non-binding and deliberately incomplete. The lease is the binding document, and it contains dozens of terms the LOI never touched: maintenance obligations, assignment and subletting, default and remedies, insurance, compliance, and more. Negotiating all of that is the work between LOI and execution, and it is substantive, which is why this phase commonly takes weeks and can run to a couple of months.
Usually the landlord's side prepares the first full lease draft based on the LOI. How fast that arrives sets the tone. A landlord with a standard form and a responsive attorney produces it quickly. A custom deal or a slow attorney delays the whole phase before negotiation even starts. Brokers can help here by making sure the LOI was clear enough that the draft does not require re-litigating settled points.
The tenant's attorney reviews the draft and returns a marked-up version, and the parties exchange redlines until the open points close. This back-and-forth is the heart of the phase and the main driver of its length. The number of rounds depends on how far apart the parties are, how complex the deal is, and, frankly, how responsive each attorney is. A clean deal might take a couple of rounds. A contentious one can take many.
Attorneys handle the legal language, but some issues are really business points in legal clothing, who pays for what, the scope of an allowance, a key date. Those escalate back to the principals, and the brokers often broker the compromise. A good broker stays engaged through this phase rather than treating the LOI as the handoff, because the deal can still come apart here, and keeping it moving protects the commission you have not yet earned.
You cannot draft the lease, but you can keep the phase from drifting. Confirm the LOI is clear and complete so the draft starts from solid ground. Stay in regular contact with both sides and their attorneys. Surface business-point disputes to the principals early rather than letting them sit in redlines. And keep gentle pressure on timelines, since a deal that loses momentum here is a deal at risk. Reaching execution is what earns the first half of your commission, so this phase is worth your attention.
Commonly weeks, and it can run to a couple of months on a complex or contested deal. The main drivers are how far apart the parties are, the complexity of the lease, and how responsive the attorneys are.
Because the LOI only captures the major business terms, while the lease papers dozens more, and the parties redline those until they close. Slow attorneys and reopened terms are the most common reasons it drags.
Make sure the LOI is clear and complete, stay engaged with both sides and their attorneys, escalate business-point disputes to the principals early, and keep steady pressure on the timeline so the deal does not lose momentum.
This guide is general information for commercial real estate brokers and is not legal advice. Lease negotiation and timelines vary by deal and jurisdiction.
