Retail LOI Term Sheet Generator
Generate a first-offer term sheet covering rent, NNN, free rent, TI, escalation, exclusives, co-tenancy, signage, and guaranty stance.
PARKER & ASSOCIATES, INC.
May 21, 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 |
| Suite | 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) | $44.16 / SF / year ($105,984 annual) |
| Annual Escalation | 2.5% per year, fixed |
| NNN / CAM | $11.40 / SF / year, with audit rights and 5% controllable expense cap |
| 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) |
| 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 tenant; landlord pays customary commission |
Broker read
First-offer term sheet, tenant side
Open around $44.16 / SF / yr base rent plus $11.40 / SF / yr NNN, with 5 months free and $80 / SF for tenant improvements. The goal is simple: lower opening risk enough that the business can survive ramp-up.
First offer terms
Plain-English watch-outs
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.
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 & AssociatesUse this with local market pages
Pair the output with the corridor that matters.
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