Common business points in a medical-office LOI
- Premises and approximate rentable square footage.
- Permitted medical or dental use.
- Lease term and commencement structure.
- Base rent and scheduled increases.
- CAM/OPEX or other pass-through structure.
- Free rent or other concessions where negotiated.
- Tenant improvement allowance and work responsibility.
- Delivery condition and construction timing.
- Parking rights and patient-access considerations.
- Renewal, expansion, assignment or sublease business points where important.
Healthcare use should not be treated as generic office use
The permitted-use language should be broad enough for the intended practice while recognizing that specialized equipment, procedures, regulated materials, waste, imaging, plumbing, HVAC or other operational needs can require further review. The LOI is not a substitute for legal, architectural or regulatory due diligence.
Timing matters as much as rent
Medical and dental projects can fail operationally even when the rent looks attractive if the delivery, design, permitting, construction and equipment schedule is unrealistic. The business understanding should be clear about when landlord work is complete, when tenant access begins and how rent commencement relates to the construction process.
Separate agreed facts from unresolved diligence
An LOI should not silently assume that a suite supports a specialty-specific requirement that has not been verified. Items such as electrical capacity, plumbing, equipment loads, parking, code compliance and permitting may require confirmation by other professionals before final commitment.
The lease is the controlling legal document
An LOI generally frames the business deal; the final lease contains the binding legal language. A qualified attorney should review legal rights, obligations, remedies and risk allocation. ClinicaMOB focuses on the transaction and real-estate business terms and does not replace legal counsel.