Illinois office lease agreement template

Illinois Office Lease Agreement

This Office Lease Agreement (the "Lease") is made and entered into as of [Date], by and between [Landlord Legal Name], a [Landlord Corporate Status, e.g., Illinois Corporation], with an address at [Landlord Address] ("Landlord"), and [Tenant Legal Name], a [Tenant Corporate Status, e.g., Illinois LLC], with an address at [Tenant Address] ("Tenant").

1. Premises

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the following described premises (the "Premises"):

• Option A: The entire floor number [Floor Number] of the building located at [Property Address], also legally described as [Legal Property Description].
• Option B: Suite number [Suite Number] on floor [Floor Number] of the building located at [Property Address], also legally described as [Legal Property Description].

Rentable Square Footage: [Rentable Square Footage] square feet.

Usable Square Footage: [Usable Square Footage] square feet.

Common Area Factor: [Common Area Factor].

Description of Leased Premises: [Detailed Description of Leased Premises]

Shared Amenities: [List of Shared Amenities, e.g., Conference Rooms, Elevators, Lobbies, Kitchenettes, Restrooms, Security Systems, Internet Infrastructure, Parking Facilities].

Dedicated/Reserved Spaces: [List of Dedicated or Reserved Spaces, e.g., Parking Spaces].

Building Access Hours: [Building Access Hours] and protocols.

2. Use of Premises

Permitted Use: The Premises shall be used solely for general office purposes and no other use.

Prohibited Uses: The Tenant shall not use the Premises for retail, medical, industrial, or any other purpose than that stated above.

Subleasing/Assignment:

• Option A: The Tenant shall not sublease the Premises or assign this Lease without the Landlord’s prior written consent, which consent shall not be unreasonably withheld.
• Option B: The Tenant shall not sublease the Premises or assign this Lease. Any such attempt shall be void.

3. Lease Term

Term:

• Option A: The term of this Lease shall be a fixed term of [Number] years, commencing on [Commencement Date] and expiring on [Expiration Date].
• Option B: The term of this Lease shall be month-to-month commencing on [Commencement Date] and continuing until terminated as provided herein.

Rent Commencement Date: [Rent Commencement Date].

Renewal/Extension:

• Option A: The Tenant shall have the option to renew this Lease for [Number] additional terms of [Number] years each, provided the Tenant gives the Landlord written notice of its intention to renew at least [Number] months prior to the expiration of the then-current term.
• Option B: No renewal option.

Tenant Improvement Period: [Number] days commencing on [Date].

4. Rent

Base Rent: The base rent shall be [Dollar Amount] per square foot per year, payable monthly in advance. Monthly base rent payment shall be [Dollar Amount].

Payment Frequency and Method: Rent shall be payable monthly, in advance, on the first day of each month, by [Payment Method, e.g., check, electronic transfer] to [Payment Instructions].

Escalation:

• Option A: The base rent shall increase annually by [Percentage] percent.
• Option B: The base rent shall be adjusted annually based on the Consumer Price Index (CPI) for [CPI Area].

Rent Abatement/Free Rent: [Number] months free rent commencing on [Date].

Proration: For any partial month, rent shall be prorated on a per diem basis.

Additional Rent: Tenant shall also pay as additional rent its proportionate share of Operating Expenses as provided in section 5.

5. Operating Expenses

Tenant's Share: Tenant shall pay [Percentage] percent of the Operating Expenses.

Operating Expenses Defined: Operating Expenses shall include, but not be limited to, CAM, real estate taxes, insurance, utilities, janitorial services, and trash removal.

Base Year: The base year for Operating Expenses is [Year].

Expense Stop: The expense stop is [Dollar Amount].

Reconciliation/Audit: Landlord shall provide Tenant with an annual statement of Operating Expenses, and Tenant shall have the right to audit Landlord’s records to verify such expenses.

Property Tax Allocation: Real estate taxes shall be allocated to the Tenant based on the Tenant's proportionate share of the rentable area of the building.

6. Security Deposit

Amount: The security deposit shall be [Dollar Amount].

Interest:

• Option A: The Landlord shall hold the security deposit without interest.
• Option B: If required by Illinois law, the Landlord will pay interest on the security deposit as required.

Allowable Deductions: The Landlord may deduct from the security deposit any amounts necessary to repair damage to the Premises (excluding normal wear and tear), clean the Premises, or pay for unpaid rent.

Return: The Landlord shall return the security deposit, less any allowable deductions, within [Number] days after the termination of this Lease.

7. Alterations and Improvements

Tenant Alterations: The Tenant shall not make any alterations or improvements to the Premises without the Landlord’s prior written consent, which consent shall not be unreasonably withheld.

Build-Out Allowance: The Landlord shall provide the Tenant with a build-out allowance of [Dollar Amount].

Plans and Permitting: All plans for alterations or improvements must be approved by the Landlord and the city, and the Tenant shall be responsible for obtaining all necessary permits.

Restoration:

• Option A: At the end of the Lease term, the Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted.
• Option B: Improvements made by tenant are not required to be removed at end of lease.

8. Repair and Maintenance

Landlord's Responsibilities: The Landlord shall be responsible for maintaining the building structure, roof, HVAC, elevators, exterior, and common areas.

Tenant's Responsibilities: The Tenant shall be responsible for maintaining the interior of the Premises, including daily cleaning and maintenance of its own fixtures and equipment. The Tenant is responsible for the interior HVAC system, unless otherwise indicated here: [HVAC Notes].

ADA Compliance: Tenant shall be responsible for any modifications required to comply with the Americans with Disabilities Act regarding tenant's specific use of the premises.

9. Building Rules and Regulations

The Tenant shall comply with all building rules and regulations, which are attached as Exhibit A and incorporated herein by reference.

Compliance with Laws: The Tenant shall comply with all applicable fire, zoning, emergency, and environmental regulations.

Occupancy Limits: The Tenant shall not exceed the occupancy limits established by the Landlord and applicable laws.

Business License: Tenant is responsible for acquiring and maintaining any required business licenses.

Hours of Operation: [Hours of Operation].

10. Insurance

Landlord's Insurance: The Landlord shall maintain property and casualty insurance on the building.

Tenant's Insurance: The Tenant shall maintain general liability and property insurance with minimum coverage amounts of [Dollar Amount].

Additional Insured: The Tenant shall name the Landlord as an additional insured on its general liability insurance policy.

Certificates of Insurance: The Tenant shall provide the Landlord with certificates of insurance and renewals upon request.

Waiver of Subrogation: To the extent permitted by law, Landlord and Tenant hereby waive all rights of subrogation against each other for any loss or damage covered by insurance.

11. Default and Remedies

Landlord Entry: The Landlord shall have the right to enter the Premises for inspection, repair, or maintenance upon reasonable notice to the Tenant, except in cases of emergency.

Tenant Default: The following shall constitute a default by the Tenant: failure to pay rent when due, failure to comply with any other term of this Lease, or abandonment of the Premises.

Landlord Remedies: Upon the Tenant’s default, the Landlord shall have the right to terminate this Lease, re-enter the Premises, and pursue any other remedies available at law or in equity. Landlord may accelerate rent per Illinois law.

Tenant Right to Cure: Tenant will have a period of [Number] days to cure non-monetary defaults, and [Number] days to cure monetary defaults.

12. Casualty and Condemnation

Casualty: If the Premises are damaged by fire or other casualty, the Landlord shall repair the Premises within a reasonable time. Rent shall be abated during the period of repair.

Condemnation: If the Premises are taken by eminent domain, this Lease shall terminate.

Abatement/Termination: If the Premises are substantially damaged or taken, either party may terminate this Lease.

13. Signage

Permitted Signage: The Tenant shall have the right to install signage on the Premises in accordance with building and local sign codes. All signage must be approved by the Landlord.

Signage Removal: At the end of the Lease term, the Tenant shall remove all signage.

14. Taxes

Real Estate Taxes: Tenant shall be responsible for their share of real estate taxes as described in Section 5.

Sales/Use Taxes: Tenant shall be responsible for all applicable sales and use taxes.

Personal Property Taxes: Tenant shall be responsible for all personal property taxes assessed on Tenant's personal property.

Tax Bills: The Landlord shall provide the Tenant with copies of tax bills upon request.

15. Move-In and Move-Out

Condition of Premises: The Tenant accepts the Premises in its “as is” condition.

Delivery of Possession: The Landlord shall deliver possession of the Premises to the Tenant on the Commencement Date.

Punch List: Landlord and tenant shall conduct a walkthrough to generate a punch list within [Number] days of move-in.

Surrender: At the end of the Lease term, the Tenant shall surrender the Premises in good condition, reasonable wear and tear excepted.

Holdover: If the Tenant holds over after the expiration of the Lease term, the rent shall be increased to [Percentage] percent of the then-current rent.

16. Americans with Disabilities Act

ADA Compliance: Tenant is responsible for compliance with the Americans with Disabilities Act concerning their use of the premises, as noted in Section 8.

17. Dispute Resolution

Negotiation: The parties shall first attempt to resolve any disputes through good faith negotiation.

Mediation/Arbitration:

• Option A: If negotiation fails, the parties agree to submit the dispute to mediation.
• Option B: If negotiation fails, the parties agree to submit the dispute to binding arbitration.

Venue: Any legal action shall be brought in the state courts located in [County Name] County, Illinois.

Governing Law: This Lease shall be governed by the laws of the State of Illinois.

18. Landlord Representations and Warranties

Authority: The Landlord represents and warrants that it has the authority to lease the Premises.

Zoning: The Landlord represents and warrants that the Premises are properly zoned for office use.

Hazardous Materials: The Landlord represents and warrants that, to the best of its knowledge, there are no hazardous materials on the Premises.

Mold Disclosure: The Landlord is providing a separate Mold Disclosure Addendum, if required by Illinois law.

19. Confidentiality

Confidentiality: The terms of this Lease shall be kept confidential. The Tenant shall not disclose the rental rate to any third party without the Landlord’s prior written consent.

20. Force Majeure

Force Majeure: Neither party shall be liable for any delay or failure to perform its obligations under this Lease due to any cause beyond its reasonable control, including but not limited to acts of God, war, terrorism, or government regulation.

21. Notices

Notice: All notices shall be in writing and shall be delivered by [Delivery Method, e.g., email, mail, hand delivery] to the following addresses:

• Landlord: [Landlord Address], Email: [Landlord Email Address]
• Tenant: [Tenant Address], Email: [Tenant Email Address]

22. Illinois Legal Requirements

Memorandum of Lease: If the term of this Lease exceeds one year, a short-form memorandum of lease may be recorded with the [County Name] County Recorder of Deeds.

Mechanics Lien: Tenant agrees to take necessary steps to protect against mechanics liens related to tenant improvements.

Lead-Based Paint Disclosure: For buildings built before 1978, a Lead-Based Paint Disclosure Addendum is attached.

23. Electronic Signatures

Electronic Signatures: This Lease may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Electronic signatures shall be deemed original signatures for all purposes.

24. Addenda

• Exhibit A: Building Rules and Regulations
• Exhibit B: Lead-Based Paint Disclosure (if applicable)

IN WITNESS WHEREOF, the parties have executed this Lease as of the date first written above.

Landlord:

[Landlord Legal Name]

By: [Landlord Signature]

Name: [Landlord Name]

Title: [Landlord Title]

Tenant:

[Tenant Legal Name]

By: [Tenant Signature]

Name: [Tenant Name]

Title: [Tenant Title]