Glossary of Useful Retail Leasing Terms
In the following section, we have defined some of the most commonly used terms in the real estate industry, as referenced in the previous sections of this leasing tool kit. Read on to familiarize yourself with these terms as you progress through your leasing journey.
Labor Harmony or Union Labor Requirements
Labor Harmony clauses are included in lease agreements to outline obligations designed to reduce the risk of labor disputes or shift the responsibility and economic impact of disputes (if/when they occur) to tenants. Almost every sophisticated Landlord will require Labor Harmony in lease agreements. Labor Harmony is different from requiring Union Labor for your work. Make sure to clarify with your broker, attorney, or trusted adviser.
Letter of Intent (LOI)
An LOI is a written document that describes the basic terms of the lease (also known as a “lease proposal” or “term sheet”) and is often signed by the landlord and tenant before proceeding to the lease. This document tends to be only a few pages long and addresses threshold provisions such as rental economics, length of term, condition of the space, permitting use(s), and timeline.
