LIVE BLOG: Steve Steinmeyer at the Law Seminars International conference

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Steinmeyer, SteveJones Lang LaSalle tenant representative Steve Steinmeyer (at left)  has joined Katten Muchin Rosenman attorney Kellye Bowers for a panel discussion on negotiating letters of intent. The two are speaking at today’s Law Seminars International conference at the University of Chicago’s Gleacher Center.

Below is a live, minute-by-minute rundown of their discussion:

8:40 a.m. — Bowers: “90 percent of letters of intent are prepared by brokers.”

8:49 a.m. — Steinmeyer on the key reasons for a letter of intent: “Some of the items you should include are economics, timing of turnover from space, key responsibilities of the landlord and subleasing restrictions.”

8:54 a.m. — Steinmeyer: “Once a letter of intent is signed, there’s a definite shift in (negotiating) leverage that occurs from tenant to landlord.”

8:58 a.m. — Steinmeyer: “I like to see terms for utilities laid out in the letter of intent.”

8:59 a.m. — Steinmeyer: “Ideally, you want to have the measurement of your space carved in stone for the duration on the lease, so it’s good to have that documented in the letter of intent as well.”

9:03 a.m. — Steinmeyer: “My inclination is, that on any remotely sophisticated deal, base-building specifications should be included in a letter of intent.”

9:04 a.m. — Steinmeyer: “We did a deal recently with a law firm recently and the firm included an astonishingly long list of other law firm that the landlord was restricted on leasing space to.”

9:07 a.m. — Steinmeyer: “There was a time when I could go in (to a landlord) with a moderately sized corporate requirement and very little in the way of a security deposit. Those days are long gone.”

9:12 a.m. — Bowers: “I’ve found that sublease restrictions are among the most negotiated provisions of a lease, but they get very little treatment in most letters of intent.”

9:20 a.m. — Steinmeyer: “The typical 8-to-6 office hours just don’t work for a lot of firms, so that needs to be outlined in a letter of intent.”

9:22 a.m. — Steinmeyer: “Everything we’re talking about comes down to the point of balance. Whatever is important to your client should be included in a LOI.”

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