Oak Brook Commercial Leases Attorneys
Experienced Guidance with Commercial Leases in DuPage County and Throughout Illinois
A large number of corporations and other businesses The terms of such leases often play a major role in the success or failure of the company. Many business owners do not realize that the terms and conditions of commercial leases are often negotiable and can be altered to provide more favorable operating conditions. To ensure you are getting the best terms for your lease, it is important to work with a skilled commercial real estate attorney.
At Tiesenga & DeBoer LLP, we have over half a century of combined corporate and business law experience. Our contract drafting and review has in-depth knowledge of commercial leases, what should be included in them, and how to negotiate and draft a lease that will be most favorable to your business. We have particular experience with industrial and agricultural businesses and the integral role leasing plays in these industries. We put this experience to work to provide skilled representation to both landlords and tenants in all matters related to real estate, leasing, and commercial litigation.
Common Issues to Consider with Commercial Leases in Illinois
Commercial leases are highly complex with numerous factors that should be considered. These include:
- The Space: Before negotiating a lease, it is important to determine exactly what space you are discussing. For example, when you are discussing square footage, does this include hallways, stairways, restrooms, etc.? Be sure you have a clear understanding of the space you are negotiating, so you know if you are receiving fair terms and conditions.
- Rent and Lease Term: It is not typical for rent to remain flat for the entire term of a lease. There are normally increases built in based on certain factors such as the consumer price index (CPI). There are times when a landlord will keep the rent flat or at least put caps on rent increases in exchange for a longer lease term. However, before committing to a longer term, make sure it is in keeping with the best interests of your organization.
- What is included in Rent Calculation: Some leases are all inclusive; meaning additional expenses such as repairs, maintenance, property taxes and insurance are included with the rent payment. More often, however, the tenant is responsible for at least some of these additional costs. Knowing which costs are included will help better determine if you are paying a fair price for rent.
- The Right to Make Improvements and Modifications: Many companies need the flexibility to modify the premises to fit the needs of the business. If you need to be able to make modifications or improvements, make sure your lease spells that out.
- The Right to Assign or Sublease: If the needs of your business change before your lease term is up, it is helpful to have the right to assign or sublease all (or part) of your property to a third party. Keep in mind that if the landlord agrees, they will normally require notice and approval, and the original lessee is typically still responsible for unpaid rent and damage to the premises.
- Legal Compliance: There are numerous federal, state and local laws and regulations that commercial properties must be in compliance with. While the landlord is typically responsible for overall property compliance, the tenant may have certain responsibilities as well (pertaining to the specific space they are renting).
- Termination Clauses: All contracts have clauses that give one (or both) parties the right to early termination. If you are the lessee, pay particular attention to penalties for early lease termination.
- Dispute Resolution: Contract disputes can lead to costly and protracted litigation. This can be a major hardship, particularly for entrepreneurs and small businesses. Commercial leases may designate arbitration, mediation or another form of alternative dispute resolution (ADR) should the need arise.
When navigating the complexities of a commercial lease, it is important to have skilled counsel in your corner advocating for your best interests. For a personalized consultation with one of our experienced Illinois commercial real estate lawyers, contact our office today at 630-645-9881. Tiesenga & DeBoer LLP provides skilled legal representation for clients in Oak Brook, Chicago, Elmhurst, La Grange, Hinsdale, Lombard, Western Springs, Burr Ridge, Westchester, DuPage County, Cook County, Will County, Lake County, Kane County, Kendall County, Grundy County and surrounding Illinois communities.