Illinois Commercial Leases

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Where you choose to base your business is part of its foundation. You want the best place to house your business and the most favorable terms to make sure that your business location will help, not hinder, business growth. Likewise, if you own commercial property that you want to lease out, you want to make sure the relationship between you as the landlord and the business seeking to leas your property will be a good fit. Commercial lease negotiations are complex and involve important specifics that can have a big impact on you as a business owner or a commercial property owner. 

WHAT COMMERCIAL LEASE TERMS SHOULD BE ADDRESSED DURING NEGOTIATIONS?

While there are a number of lease terms that can and should be addressed during the commercial lease negotiation process, some of the key terms include:

• Rent: This is one of the most basic and important things to address. How much will it cost to rent the space? Furthermore, it is important to address whether there will be rent increases and, if so, what those increases will look like and when will they occur. A rent provision in the lease should also address what operating costs the landlord and the tenant will be responsible for and how rent disputes will be addressed.

• Premises description: This may seem straight forward. If you want to rent an entire building, the building will be the premises. If you are renting a particular space in a building, that space will be the premises. However, there are other important considerations that you will want to include in the lease agreement. Make sure there is an exact and detailed description of the space to be leased. Additionally, include whether any shared spaces, such as conference rooms and parking lots, will be accessible to the person securing the lease. Describe how the business employees and customers or clients will be able to access the premise.

• Use: Referred to as the “Use and Exclusives Clause,” you will want to be clear as to how the property may be used and what type of business types and activities are permissible. An exclusion of a certain type of business may prevent you from conducting the business you want to on the property or bar you from expanding your business in some way.

Some of the other important commercial lease terms will include:

• Move in dates
• Maintenance issues
• Insurance providers
• Security deposits
• Premises security arrangements
• Subletting
• Dispute resolution provisions

PROTECTING YOUR INTERESTS IN COMMERCIAL LEASE NEGOTIATIONS

Commercial leases contain complex provisions that can have lasting consequences for you at the business owner looking for property or for you as the property owner. Make sure you are protecting your best interests before entering into a lease agreement.