A commercial lease agreement is a written contract used to rent an office, retail, or industrial space. This legally binding document outlines the terms and conditions associated with renting the space. These types of leases are generally more involved than a residential lease because commercial properties cost more to maintain. The contract is typically between a party who owns a commercial property (landlord) and a tenant who rents the property or building space in order to operate a business, usually in the retail, office, or industrial fields. Per Illinois real estate law, there are certain issues that must be addressed in a commercial lease agreement in order for it to be valid.
Finding the Right Fit for Your Business
Commercial leases are important since they provide income for the property owner or landlord and also provides the business owner with a safe and secure place in which to do business. In addition, these agreements establish rules for how the business can be conducted, as well as the rights and responsibilities of each party. Specific details about what kind of business will be conducted should be clearly stated so as to avoid any illegal activity. Standard residential leases usually last one or two years, while a commercial lease can be 10 years or more, especially if the business is thriving.
Similar to other states, Illinois has three main types of commercial leases:
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