Retail LOI Term Sheet Generator
Get a working read on a first-offer term sheet covering rent, NNN, free rent, TI, escalation, exclusives, co-tenancy, signage, and guaranty stance — with an affordability read that grounds the counter in what the concept can actually carry. When you're ready, request a broker-prepared, landlord-ready Letter of Intent.
PARKER & ASSOCIATES, INC.
May 29, 2026
Retail real estate brokerage · DRE #00836385 · Lake Forest, CA · (949) 796-7275 · leasing@digitalre.com
Retail LOI Term Sheet Generator
Deal underwriting summary
Assumptions
| Side | Tenant |
| Tenant | Operator, LLC |
| Concept | Fast casual |
| Premises | 2,400 SF |
| Asking base | $48.00 / SF / yr |
| Asking NNN | $12.00 / SF / yr |
| Term | 7 yrs + 2×5 options |
| Buildout | 2nd-gen, heavy reconfig |
| Personal guaranty | Limited (12 mo, burn-down) |
| Tenant | Operator, LLC |
| Concept | Fast casual |
| Premises | 2,400 SF |
| Term | 7 years, with 2 option(s) of 5 years each at fair market rent |
| Base Rent (Year 1) | $40.85 / SF / year ($98,040 annual) |
| Annual Escalation | 2.5% per year, fixed |
| NNN / CAM | $11.40 / SF / year, with audit rights and a 5% annual cap on controllable operating expenses |
| Free Rent | 5 months gross at lease commencement |
| Tenant Improvement Allowance | $80 / SF ($192,000), paid on substantial completion and certificate of occupancy |
| Delivery Condition | 2nd-gen, heavy reconfig |
| Security Deposit | 1 month(s) base rent (refundable) |
| Personal Guaranty | Limited (12 mo, burn-down) — reducing after 24–36 months of clean payment |
| Permitted Use | Operation as a fast casual; broad menu / merchandising flexibility within concept |
| Exclusive Use | Exclusive against directly competing restaurant concepts in the center |
| Co-tenancy | Reduced rent and kick-out triggers if anchor or 50% of GLA goes dark for 90+ days |
| Signage | Building signage at maximum allowed by code, plus dedicated pylon panel and monument inclusion |
| Drive-thru | Not applicable |
| Hours | Tenant determines hours; no required hours of operation |
| Assignment / Sublet | Permitted with landlord consent (not unreasonably withheld); permitted without consent to affiliates and franchisees |
| Contingencies | LOI contingent on: (1) lease negotiation, (2) ABC license + CUP / health permits, (3) tenant due diligence (30 days) |
| Brokerage | Parker & Associates, Inc. represents the Tenant in this transaction; Landlord pays the customary leasing commission. |
Broker read
First-offer term sheet, tenant side
A fast casual doing about $500/SF in sales carries roughly $35.00–$55.00 / SF all-in. Asking is $60.00/SF — above that band. Open near $40.85/SF base and treat $43.00/SF base ($55.00 all-in) as the walk-away. The math sets the ceiling, not nerve.
Affordability read
Assumes $500/SF sales — conservative low end; set your own above.
Above what the concept can carry.
Above this, the business runs out of margin to ramp.
Working term sheet
These are working terms to think with — not a document to send. A landlord-ready Letter of Intent goes out under Parker & Associates, prepared and reviewed by a broker.
Get a ready-to-send LOI
Want this turned into a real Letter of Intent? Tell us where to reach you and a Parker broker will prepare a landlord-ready LOI and follow up. No cost to you — the landlord pays our commission.
Plain-English watch-outs
Asking rent is above what this concept can carry
At $500/SF in sales, a fast casual supports about $35.00–$55.00 / SF all-in. The asking $60.00/SF leaves no margin for ramp — anchor low and be ready to walk above $43.00/SF base.
ABC license and CUP must be contingencies, not assumptions
An LOI without these contingencies is signing a check before you know if you can open.
TI for restaurant utilities is separate from cosmetic TI
Hood, gas, and grease upgrades often run $80–$150 / SF. Landlords routinely fund a portion when documented.
Who this represents
Generate it as a tenant and Parker represents you — at no cost to you.
In Orange County retail the landlord pays the leasing commission, so tenant representation costs you nothing. The brokerage line and the deal terms flip with the side you choose — on the landlord side the document reflects landlord representation.
We prepare the LOI
Get a working read now. We write the real letter when you're ready.
The tool shows you where the terms should land. When you want to make an offer, request your LOI — a broker prepares a clean, non-binding Letter of Intent and reaches out, so it goes to the landlord reviewed and with Parker behind it.
How to read the output
A starting point. Not a substitute for a tour, a comp set, or a lease review.
The verdict and the score are calibrated against the ranges Parker & Associates, Inc. uses to underwrite Orange County retail deals. Inside the band is workable; outside is a conversation worth having before LOI.
The recommendations are ranked by likely impact, not by what is easiest to fix. The biggest unlock is usually a single change, not five.
When the deal is real, send the output to Parker & Associates. Every tool has a one-click handoff that sends the inputs and the read along with it.
Talk to Parker & AssociatesCommon questions
Letters of intent, answered straight.
Is this Letter of Intent binding?
No. The document this tool generates is an explicitly non-binding Letter of Intent — it is for discussion only and creates no obligation on either side. Nobody is committed until a definitive lease is negotiated and signed by both parties. The printed letter states this in writing.
Who does Parker & Associates represent?
Whichever side you choose. On the tenant side, Parker & Associates represents you, the tenant — at no cost to you, because in Orange County retail the landlord pays the leasing commission. On the landlord side, we position the deal from the landlord's perspective. The read and the terms flip with the side you pick.
What does it cost me to use this or to have Parker negotiate?
The tool is free. For tenants, our representation is also effectively free: the landlord pays the commission out of the deal, the same commission they would pay either way. You get a broker on your side of the table at no added cost.
How do I get the actual Letter of Intent?
We prepare it for you. The tool gives you a working read on the terms; when you're ready to make an offer, request your LOI and a Parker & Associates broker pressure-tests the rent against South Orange County comps, prepares a clean landlord-ready Letter of Intent, and reaches out — usually the same business day — with the document or a couple of quick questions first. We don't hand out a self-serve letter, because a real LOI should go out reviewed and with a broker behind it.
Use this with local market pages
Pair the output with the corridor that matters.
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