An Illinois commercial lease agreement is a binding contract for a tenant to lease retail, office, or industrial space. The agreement sets the responsibilities and rights for both landlords and tenants, as well as details about rent, deadlines, penalties, and other items.
The Illinois law that governs commercial leases is the Illinois Uniform Commercial Code, 810 ILCS 5, Article 2A. These types of leases are longer and more complicated than a residential lease, so consulting with a lawyer is advisable.
Writing Illinois Commercial Lease Agreements
An Illinois commercial lease agreement should generally contain the following:
- Landlord’s information
- Property manager’s information (if any)
- Tenant’s information
- Description of the lease property
- Authorized uses of the property
- Option to renew the lease (if any)
- Type of lease (gross, modified-gross, or triple-net)
- Term of the lease and the start date
- Rent and landlord’s profit participation in operations (if any)
- Penalty for late/non-payment of rent (including eviction process)
- Designation of the responsible parties for certain expenses and utilities
- Security deposit and refund policy
- Permissible leasehold improvements allowed by the landlord
- Additional terms as needed (including municipal codes and restrictions)
- Landlord and tenant contact information and form for legal service
- Place for the notarized signatures of all parties
- Lease-specific terms
