Illinois Commercial Lease Agreement
An Illinois commercial lease agreement is a legally binding contract between a commercial entity and a property owner or landlord. This agreement serves to document key terms such as lease duration, rent, security deposit, exclusivity, and subleasing. It is essential for both parties to fully understand the clauses within the document prior to signing, particularly since Illinois has specific tenant protection laws that primarily apply to residential tenants. This type of lease is commonly utilized for leasing industrial, retail, or office spaces.
Illinois Commercial Lease Agreement
Illinois Business Entity Search
Landlords have the option to verify a business entity’s operational status by accessing their credentials in the Illinois Business Entity Search database.
Requirements
Rental Laws
The relevant rental laws for commercial leases in Illinois are outlined in the Illinois Compiled Statutes Chapter 810, Act 5, Article 2A (Leases).
Consumer Protection Laws
Consumer protection laws applicable to commercial leases can be found in 810 ILCS 5/2A-104.
Jurisdiction
According to 810 ILCS 5/2A-106, the jurisdiction for any legal matters related to the lease must correspond with one of the following:
- The lessee’s residence
- The location of the rental property
- The jurisdiction where the lease is executed
If none of these conditions are met, the judicial forum may not be enforceable.
Required Disclosures
Rent Concession Act
If a landlord offers a rent reduction to their tenant, this must be documented in the lease agreement as per 765 ILCS 730.
Utility Payments
Before requiring tenants to pay for utility services, landlords must disclose the formula used to allocate charges for master-metered public utility services, as mandated by 765 ILCS 740/5(a).
Statutes
- 765 ILCS 710/1 – Statement of damage
- 765 ILCS 710(c) – Statement of damage
- 765 ILCS 715/1
- 765 ILCS 715/2
- 735 ILCS 5/9-102 – When action may be maintained
- 735 ILCS 5/9-205 – Notice to terminate tenancy from year to year
- 735 ILCS 5/9-207(a) – Notice to Terminate a Week-to-Week Lease
- 735 ILCS 5/9-207(b) – Notice to Terminate a Month-to-Month Lease
- 735 ILCS 5/9-207.5 – Termination of bona fide leases in residential real estate in foreclosure
- 735 ILCS 5/9-209 – Demand for rent – eviction action
- 735 ILCS 5/9-210 – Notice to quit
- 735 ILCS 5/9-213.1 – Duty of landlord to mitigate damages
- 735 ILCS 5/9-318 – Seizure of Crops for Unpaid Rent
- 765 ILCS 705/25 – (Text of Section from P.A. 103-840) Disclosure of potential flooding in rental and lease agreements
- 765 ILCS 735/1.4 – Prohibition on termination of utility service by landlord
- 765 ILCS 750/1 – Short Title
- 765 ILCS 750/5 – Purpose
- 765 ILCS 740/5 – Disclosure of utility payments included in rent
- 765 ILCS 742/5 – Repair; deduction from rent
- 765 ILCS 750/20 – Change of Locks
- 765 ILCS 750/27 – Nondisclosure, Confidentiality, and Privilege
- 765 ILCS 720/1 – [Repealed Effective 1/1/2025]
- 770 ILCS 95/7.10 – Late Fees
- 420 ILCS 46/26 – Disclosure of radon hazard to current and prospective tenants
- 810 ILCS 5/3-806
FAQs
An Illinois commercial lease agreement is a legally binding contract between a commercial entity and a property owner or landlord. It outlines key terms such as lease duration, rent, security deposit, exclusivity, and subleasing, and is commonly used for leasing industrial, retail, or office spaces.
Key requirements for an Illinois commercial lease agreement include adherence to the Illinois Compiled Statutes Chapter 810, Act 5, Article 2A, which governs leases, and ensuring that the jurisdiction aligns with the lessee’s residence, the rental property’s location, or where the lease is executed.
A landlord can verify a business entity’s operational status in Illinois by accessing their credentials in the Illinois Business Entity Search database. This ensures that the business is legally registered and operational before entering into a lease agreement.
If a landlord offers a rent concession, such as a rent reduction, it must be documented in the lease agreement as per the Rent Concession Act (765 ILCS 730). This ensures transparency and legal compliance regarding any changes to the rental terms.
Before requiring tenants to pay for utility services, landlords in Illinois must disclose the formula used to allocate charges for master-metered public utility services, as mandated by 765 ILCS 740/5(a). This helps tenants understand how their utility costs are calculated.
If the jurisdiction for a lease agreement does not align with the lessee’s residence, the location of the rental property, or where the lease is executed, the judicial forum may not be enforceable under 810 ILCS 5/2A-106. This could lead to legal complications if disputes arise.