Illinois retail lease agreement template

Illinois Retail Lease Agreement

This Illinois Retail Lease Agreement (the "Agreement") is made and entered into as of this [Date] by and between:

Landlord: [Landlord Name], residing at [Landlord Address], or its authorized agent, [Agent Name], residing at [Agent Address]. Illinois Business Registration Number (if applicable): [Landlord Illinois Business Registration Number].

Tenant: [Tenant Name], a [Tenant Entity Type, e.g., Corporation, LLC, Individual], residing at [Tenant Address], or if a business entity, with its principal place of business at [Tenant Business Address]. Illinois Business Registration Number (if applicable): [Tenant Illinois Business Registration Number].

Hereinafter, Landlord and Tenant are sometimes collectively referred to as the “Parties” or individually as a “Party.”

Premises

Option A: The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the retail space located at [Property Address], also legally described as [Legal Description], County of [County Name], State of Illinois, specifically Unit/Suite Number [Unit/Suite Number], consisting of approximately [Square Footage] square feet (the "Premises").

Option B: Attached hereto as Exhibit A is a detailed site plan outlining the Premises, including its location within the building, dimensions, ingress/egress points, and dedicated areas.

The Premises include the following: frontage of [Frontage Length], located on the [Floor Location] floor, with [Number] egress/ingress points, dedicated signage areas as specified in Section 12, display windows of [Length of Display Windows], and [Yes/No] rear or loading access.

Common Areas

Option A: Tenant shall have the non-exclusive right to use the common areas of the property, including but not limited to parking areas, sidewalks, landscaping, restrooms, and waste disposal facilities, in common with other tenants and their customers. Tenant shall be allotted [Number] parking spaces located at [Location of Parking Spaces].

Option B: Landlord reserves the right to alter, modify, or restrict the use of common areas, provided that such changes do not materially interfere with Tenant’s business operations.

Permitted Use

Option A: The Premises shall be used solely for the purpose of operating a [Type of Retail Business, e.g., Clothing Store, Restaurant, Electronics Store] retail business (the "Permitted Use"). This includes the sale of [Specific Products or Services].

Option B: The Tenant shall not use the Premises for any unlawful purpose or any purpose that violates any applicable zoning ordinances or other laws, rules, or regulations of the State of Illinois or any local government. Specifically prohibited uses include [List of Prohibited Uses]. This lease is subject to all applicable zoning ordinances of [Municipality], Illinois.

Lease Term

Option A: The initial term of this Lease shall be [Number] years and [Number] months, commencing on [Start Date] (the "Commencement Date") and expiring on [End Date] (the "Expiration Date").

Option B: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] years each. To exercise this option, Tenant must provide written notice to Landlord no later than [Number] days prior to the Expiration Date of the then-current term. Rent adjustment on renewal will be determined as follows: [Method of Rent Adjustment].

Rent

Option A: The base rent for the Premises shall be [Dollar Amount] per month, payable in advance on the first day of each month, commencing on the Commencement Date.

Option B: In addition to the base rent, Tenant shall pay percentage rent equal to [Percentage]% of Tenant's gross receipts exceeding [Dollar Amount] per [Month/Year]. Tenant shall provide Landlord with a monthly/annual statement of gross receipts within [Number] days of the end of each month/year.

Option C: Payments shall be made via [Method of Payment, e.g., electronic transfer, check] to [Payment Instructions]. Late fees of [Dollar Amount or Percentage]% will be assessed for payments received more than [Number] days after the due date. Returned payment charges shall be [Dollar Amount].

All required Illinois state and local sales taxes are the responsibility of the tenant and shall be collected and remitted according to Illinois Department of Revenue regulations.

Security Deposit

Option A: Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount], which shall be held by Landlord as security for the performance of Tenant's obligations under this Lease.

Option B: The security deposit shall be held in an escrow account at [Bank Name] and shall be subject to the provisions of Illinois security deposit law. Landlord shall provide tenant with required disclosures under Illinois law regarding interest payments on security deposits (if applicable).

Landlord shall return the security deposit to Tenant within [Number] days after the Expiration Date or earlier termination of this Lease, less any deductions for damages to the Premises or other amounts due under this Lease, as allowed by Illinois law.

Triple Net (NNN) Charges

Option A: In addition to the base rent, Tenant shall pay its proportionate share of all real property taxes, insurance premiums, and common area maintenance (CAM) charges (collectively, "NNN Charges"). Tenant's proportionate share shall be [Percentage]% of the total NNN Charges for the property.

Option B: CAM charges include, but are not limited to, landscaping, snow removal, parking lot maintenance, and security. Landlord shall provide Tenant with an annual statement of NNN Charges, and Tenant shall have the right to audit such statement within [Number] days of receipt.

Utilities and Services

Option A: Tenant shall be responsible for the payment of all utilities serving the Premises, including water, electricity, gas, trash removal, and telecommunications.

Option B: Tenant shall be responsible for HVAC maintenance, including adherence to seasonal Illinois standards, janitorial services, pest control, and snow/ice removal from sidewalks and parking areas adjacent to the Premises. Landlord shall be responsible for [Landlord Responsibilities].

Tenant Improvements

Option A: Landlord shall provide Tenant with a tenant improvement allowance of [Dollar Amount] to be used for improvements to the Premises.

Option B: All tenant improvements shall be subject to Landlord's prior written approval and shall be performed in accordance with all applicable building codes and regulations. Tenant is responsible for obtaining all required building permits and certifications.

Option C: At the expiration or termination of this Lease, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted, unless otherwise agreed to in writing by Landlord.

Maintenance and Repair

Option A: Landlord shall be responsible for the maintenance and repair of the structural elements of the Premises, including the roof, foundation, and exterior walls.

Option B: Tenant shall be responsible for the maintenance and repair of the non-structural elements of the Premises, including interior plumbing, electrical systems, flooring, fixtures, and restrooms.

Option C: Tenant shall promptly notify Landlord of any needed repairs, and Landlord shall respond within a reasonable time. Emergency repairs will be addressed immediately.

Insurance

Option A: Tenant shall maintain liability insurance with minimum coverage of [Dollar Amount], naming Landlord as an additional insured.

Option B: Tenant shall also maintain property and casualty insurance (fire and extended coverage) on its personal property and business inventory. Tenant shall provide Landlord with proof of insurance upon request.

Signage

Option A: Tenant shall have the right to install signage on the Premises in accordance with applicable municipal sign codes and Landlord's reasonable standards.

Option B: All signage must be approved by Landlord prior to installation and shall be maintained in good condition by Tenant.

Option C: At the expiration or termination of this Lease, Tenant shall remove all signage and repair any damage caused by the removal.

Assignment and Subletting

Option A: Tenant shall not assign this Lease or sublet the Premises without Landlord's prior written consent, which shall not be unreasonably withheld.

Option B: Any assignment or subletting shall be subject to all of the terms and conditions of this Lease, and Tenant shall remain liable for the performance of all obligations under this Lease, including but not limited to compliance with Section 9-102 of the Illinois Code of Civil Procedure.

Compliance with Laws

Option A: Tenant shall comply with all applicable federal, state, and local laws, rules, and regulations, including but not limited to all Illinois business, health, labor, public accommodation, liquor licensing (if applicable), and environmental regulations.

Option B: Tenant shall be responsible for obtaining all necessary permits and licenses to operate its business on the Premises.

Default and Remedies

Option A: If Tenant fails to pay rent or otherwise breaches this Lease, Landlord shall have the right to terminate this Lease and pursue all available remedies under Illinois law, including eviction under the Illinois Forcible Entry and Detainer Act.

Option B: Landlord shall provide Tenant with written notice of any default and an opportunity to cure the default within [Number] days.

Dispute Resolution

Option A: Any dispute arising out of or relating to this Lease shall be resolved through negotiation and mediation before resorting to litigation.

Option B: This Lease shall be governed by and construed in accordance with the laws of the State of Illinois. Venue for any legal action shall be in the circuit court of the county in which the Premises are located.

Casualty and Condemnation

Option A: If the Premises are damaged by fire or other casualty, this Lease shall terminate if the Premises are rendered untenantable and cannot be restored within [Number] days.

Option B: If the Premises are taken by eminent domain, this Lease shall terminate, and Tenant shall be entitled to compensation for its leasehold interest and personal property to the extent permitted by Illinois law.

Notices

Option A: All notices under this Lease shall be in writing and shall be deemed to have been duly given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth above.

Option B: Either party may change its address for notice purposes by giving written notice to the other party.

Rules and Regulations

Option A: Tenant shall comply with all rules and regulations established by Landlord for the property, including hours of operation, loading/unloading windows, and delivery restrictions.

Option B: Landlord reserves the right to amend or modify the rules and regulations from time to time, provided that such changes are reasonable and do not materially interfere with Tenant's business operations.

Integration Clause

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications and proposals, whether oral or written.

Severability

If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Successors and Assigns

This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

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

Landlord:

____________________________

[Landlord Name/Authorized Agent Name]

____________________________

[Title, if applicable]

Tenant:

____________________________

[Tenant Name/Authorized Representative Name]

____________________________

[Title, if applicable]