Illinois warehouse lease agreement template

Illinois Warehouse Lease Agreement

This Warehouse Lease Agreement ("Agreement") is made and entered into as of this [Date] by and between [Landlord Name], a [Landlord Entity Type] with its principal place of business at [Landlord Address] ("Landlord"), and [Tenant Name], a [Tenant Entity Type] with its principal place of business at [Tenant Address] ("Tenant").

Property Description

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the warehouse space (the "Premises") located at [Warehouse Address], with Property Index Number (PIN): [PIN] and legally described as: [Legal Description].

The Premises includes:

• Total rentable square footage: [Square Footage]
• Clear height: [Clear Height]
• Number of loading docks: [Number of Docks], Type: [Dock Type, e.g., Standard, Truckwell]
• Number of drive-in doors: [Number of Drive-in Doors]
• Floor load limit: [Floor Load Limit]
• Racking systems: [Description of Racking Systems, if any]
• Temperature control: [Description of Temperature Control, e.g., HVAC, Refrigeration]
• Office/Mezzanine buildout: [Description of Office/Mezzanine, if any]
• Parking/Yard area: [Description of Parking/Yard Area]
• Outdoor Storage: [Description of Outdoor Storage Area, if any]

Permitted Use

The Premises shall be used solely for the following purposes: [List of Permitted Uses, e.g., Receiving, Storage, Assembly, Order Fulfillment].

The Tenant shall not:

• Change the use of the Premises without Landlord's prior written consent.
• Sublease or assign this Lease without Landlord's prior written consent.
• Store hazardous materials on the Premises, except as specifically negotiated and allowed under Illinois statutes and local codes in a separate addendum. If hazardous materials are approved, the Tenant must provide safety data sheets (SDS) and comply with all relevant regulations, including the Illinois Environmental Protection Act.
• Conduct any activities that violate local industrial zoning, Illinois Environmental Protection Act, fire, and health codes.

Tenant shall comply with all applicable local building codes and city/village ordinances, including obtaining any necessary business licenses and special warehouse permits.

Lease Term

The term of this Lease shall commence on [Commencement Date] and expire on [Expiration Date].

Option to Renew:

• Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration] each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] months prior to the expiration of the then-current term.
• Option B: No option to renew.

Expansion/Contraction Rights:

• Option A: Tenant shall have the right to expand or contract the Premises as detailed in Exhibit [Exhibit Letter].
• Option B: No expansion or contraction rights.

Early Termination:

• Option A: Tenant shall have the right to terminate this lease early upon [Number] months written notice to landlord and payment of a termination fee of [Amount].
• Option B: No early termination permitted.

Holdover Rent: If Tenant remains in possession of the Premises after the expiration of the Lease Term without Landlord’s written consent, Tenant shall pay holdover rent at a rate of [Percentage]% of the then-current monthly rent, as per the Illinois Commercial Lease Act.

Rent and Security Deposit

The monthly rent shall be [Rent Amount], payable in advance on the first day of each month, to Landlord at [Payment Address].

Security Deposit:

• Tenant shall deposit with Landlord a security deposit of [Security Deposit Amount], to be held by Landlord in accordance with the Illinois Security Deposit Return Act for commercial leases. Landlord is NOT required to maintain such security deposit in a segregated bank account, but must return or properly account for it within 45 days after the Lease terminates, as per Illinois law.

Annual Escalation:

• Option A: The rent shall increase annually by [Percentage]%.
• Option B: The rent shall increase annually based on the Consumer Price Index (CPI) for [CPI Area].
• Option C: No annual escalation.

Lease Structure:

• Option A: Triple-Net (NNN)
• Option B: Modified Gross

CAM and Industrial Property Tax: Tenant shall pay its pro rata share of Common Area Maintenance (CAM) expenses and industrial property taxes, as determined by Landlord and outlined in Exhibit [Exhibit Letter].

Utilities, Insurance, and Taxes

Utilities:

• Tenant shall be responsible for the payment of the following utilities: [List of Utilities, e.g., Gas, Electric, Water, Sewer].
• Landlord shall be responsible for the payment of the following utilities: [List of Utilities, e.g., None].

Trash Pickup: Tenant's responsibility.

Snow/Grounds Maintenance: Landlord's responsibility.

Insurance: Tenant shall maintain insurance coverage as specified in Section 12.

Taxes:

• Tenant shall be responsible for all applicable state and local business, use, or warehouse-specific property taxes (such as Cook County leasehold tax if relevant).
• Tenant shall be responsible for sales tax on rent if required for ancillary services.

Access and Use

Tenant shall have access to and use of the following: loading docks, truck maneuvering areas, shared driveways, reception area [Reception Access Details], and security features.

Tenant Improvements

Any Tenant Improvements must be approved in writing by the Landlord, including review of architectural plans and obtaining any necessary permits in accordance with Illinois municipal codes.

Restoration or Buyout:

• Option A: Tenant shall restore the Premises to its original condition at the end of the Lease Term.
• Option B: Tenant shall have the option to buyout certain improvements as negotiated at Lease end.

Amortization and Ownership: [Details on Amortization and Ownership of Improvements].

Repair and Maintenance

Tenant shall be responsible for the repair and maintenance of the interior of the Premises and any equipment installed by Tenant.

Landlord shall be responsible for the repair and maintenance of the structure, roof, utility systems, and compliance with building codes.

Tenant shall promptly report any necessary repairs to Landlord.

Landlord shall have reasonable access to the Premises for repairs.

Capital Repair Costs: [Allocation of Capital Repair Costs].

Casualty Events: [Provisions for handling casualty events].

Insurance and Indemnification

Tenant shall maintain insurance coverage in compliance with the Illinois Premises Liability Act, including property insurance, general liability insurance, products/completed operations insurance, and workers' compensation insurance (if required by Tenant's operations).

Coverage Amounts: [Specific Coverage Amounts].

Tenant shall provide Landlord with certificates of insurance evidencing the required coverage.

Mutual Indemnification: [Details on Mutual Indemnification].

Fire and Life Safety

The Premises shall have fire and life safety systems, including sprinklers and alarms, which shall be inspected as per local code.

Emergency exits shall be clearly marked.

Tenant shall comply with all regulations regarding material handling equipment storage and use.

Emergency Incident Notification Procedures: [Details on Emergency Incident Notification Procedures].

Equipment Installation

Tenant shall notify Landlord of any substantial alterations related to equipment installations (e.g., forklifts, conveyor systems, racks, climate control, security cameras).

Tenant shall be responsible for the maintenance of its equipment.

Move-In/Move-Out Procedures

Joint inspection of the Premises shall be conducted prior to move-in and after move-out.

Tenant shall return all keys and electronic access cards to Landlord upon move-out.

Environmental Site Assessment: At the conclusion of the Lease, particularly if Tenant has stored chemicals or pallets, an environmental site assessment may be required at Tenant's expense.

Property Condition: The Premises shall be returned in good condition, reasonable wear and tear excepted.

Security Deposit Deductions: Any damages beyond reasonable wear and tear will be deducted from the security deposit.

Hazardous Materials

Tenant shall comply with all federal, state, and local laws and regulations relating to hazardous materials, including RCRA, CERCLA, and the Illinois Environmental Protection Act.

Tenant shall maintain material safety data sheets (SDS) and spill containment equipment, if authorized to store hazardous materials.

Reporting of Hazardous Materials Releases: [Details on Reporting Requirements].

Signage

Tenant shall be allowed to place signage on the exterior of the Premises, consistent with municipal codes and Landlord's building aesthetics.

Sublease and Assignment

Tenant shall not sublease or assign this Lease without Landlord's prior written consent, which consent shall not be unreasonably withheld, as per Illinois contract assignment precedents.

Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved through commercial arbitration/mediation in [County] County, Illinois.

The exclusive legal venue for any litigation shall be the Circuit Court of [County] County, Illinois.

This Lease shall be governed by and construed in accordance with the laws of the State of Illinois.

Default

Events of Default: [List of Events of Default].

Notice and Cure Periods: Landlord shall provide Tenant with written notice of any default, and Tenant shall have [Number] days to cure the default.

Illinois-Mandated Notice: Landlord shall comply with all Illinois-mandated statutory notice requirements for commercial evictions or lease termination.

Landlord's and Tenant's Remedies: [Details on Remedies].

Lien Rights/Distraint: Landlord shall have the rights provided under Illinois law, including the right to pursue lien rights or landlord's statutory right of distraint/detention.

Taxes

Tenant shall be responsible for all applicable state and local business, use, or warehouse-specific property taxes (such as Cook County leasehold tax if relevant).

Tenant shall be responsible for sales tax on rent if required for ancillary services.

Tenant shall be responsible for any local tax incentives, TIF district obligations, or enterprise zone compliance.

Access and Inspection

Landlord shall have the right to access the Premises for inspection, repairs, or other legitimate purposes, with [Number] hours' notice, except in emergencies, as per Illinois statutory requirements.

Modification of Lease Terms

Landlord reserves the right to modify Lease terms pursuant to changes in Illinois building or safety regulations.

General Provisions

Estoppel Certificate: Tenant shall deliver an estoppel certificate to Landlord upon request.

Quiet Enjoyment: Landlord covenants that Tenant shall have quiet enjoyment of the Premises.

Force Majeure: [Definition of Force Majeure Events].

Waiver: No waiver of any provision of this Lease shall be effective unless in writing.

Notices: All notices shall be in writing and sent to the addresses listed above. All notices must comply with Illinois address requirements.

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

Authority to Contract: Each party represents that it has the authority to enter into this Lease.

Amendment: This Lease may be amended only by a written instrument signed by both parties.

Non-Merger: The terms of this Lease shall not merge upon renewal.

Full Integration: This Lease constitutes the entire agreement between the parties.

Required Disclosures

Lead Disclosure: [Lead Disclosure, if applicable].

Mold Disclosure: [Mold Disclosure, if applicable].

Known Environmental Hazards: [Disclosure of Known Environmental Hazards, if applicable].

ADA Accessibility: [Details on ADA Accessibility].

Certificate of Occupancy/Business License: Tenant is responsible for obtaining any required Certificate of Occupancy or municipal business license prior to commencing operations.

Warehouse Safety

Tenant shall comply with all OSHA and Illinois Department of Labor warehouse safety requirements.

Tenant shall deliver copies of required permits to Landlord.

Tenant shall maintain safety training records for on-site personnel.

Specialized Utility Agreements

[Details on Submetering, Propane Tank Lease, Heavy Power Requirements, etc.].

Union Labor Rules

[Provisions addressing the impact of union labor rules in warehousing, if applicable].

Stormwater Management

[Obligations for stormwater management/drainage mandated by local authorities].

Pest Control

[Pest control responsibilities according to Illinois waste management statutes].

Recycling Programs

[Requirements for recycling programs according to Illinois waste management statutes].

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

Landlord:

____________________________

[Landlord Name]

By: ____________________________

[Landlord Representative Name]

[Landlord Representative Title]

Tenant:

____________________________

[Tenant Name]

By: ____________________________

[Tenant Representative Name]

[Tenant Representative Title]