Illinois Commercial Lease Agreement

Last updated September 25th, 2021

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An Illinois commercial lease agreement is used to define the terms and conditions of a rental arrangement in which commercial property is leased to a tenant. Commercial tenants are often assigned to a significantly longer term than those given in residential tenancies, with an average commercial lease lasting three (3) to five (5) years. Prior to the expiration of the agreement, the landlord may allow tenants the opportunity to extend the lease for one (1) or more additional terms. Lease renewal options and all other rental conditions should be discussed between the parties before executing the agreement.

Lease Application – Landlords of commercial property can use a lease application to examine the background information of potential tenants and ensure their reliability as a leaseholder.

Laws Chapter 765, Sections 705-755 – Landlord and Tenant

Disclosures (2)

  1. Rent Concession Act
  2. Utility Payments

1) Rent Concession Act

If a landlord grants their tenant a rebate or reduction in rent, it must be indicated in the lease agreement.

2) Utility Payments

A landlord cannot require tenants to pay for master metered public utility services unless they disclose the formula used to allocate the charges.