In this video our Elmhurst commercial real estate attorneys discuss types of commercial leases and tips for negotiating that lease. First there is a commercial net lease that includes utilities and property taxes on top of a base rent, while on the other hand there is a double net lease that has insurance on the tenants side in addition to those things. Finally, there is a triple net lease that has the tenant paying for all of the cost of the building except for structural repairs on top of their base rent, and then there is a full service gross lease that has the tenant paying for a flat base rent every month and the landlord is then responsible for all of the costs of the building. A full service gross lease is going to have the highest rent out of the four options.

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When negotiating the lease it is important to think about the length of the lease, comparable rents, and what type of commercial property it is. Next attorneys come in to make sure clauses are favorable to you. As a tenant, it is important having the right to sublease. Making sure the landlord can not lease competitors in the same building is another right you would want to make sure you have before leasing. Lastly, fair signage approval and fair clause for landlord repairs and improvements are other important aspects to check when signing a commercial real estate lease.

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Our Elmhurst commercial real estate attorneys discuss how the implied warranty of habitability is a legal doctrine created by Illinois case law. In every written or oral lease, Illinois courts imply a warranty on the part of the landlord that the property will be kept in a condition that is habitable. A property is not uninhabitable simply because of minor building code violations. Rather the defect in the property must cause a reasonable person to consider the property uninhabitable in order for a breach to exist.

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Our Elmhurst commercial real estate attorneys discuss the importance of having an attorney when buying or selling commercial real estate property. There are a number of issues that can arise during the process of buying, selling, financing and developing commercial property and trying to navigate the process alone, or even with the help of a commercial real estate agent can be difficult. Commercial real estate purchases also have many more laws and regulations than buying a home, all of which must be followed in order for the transaction to be valid. While some states do not require you to have an attorney present at closing, or at all throughout the process, it is highly advised that your attorney is at the closing. In fact, it’s not uncommon for the seller to invoke power of attorney and let their attorney handle all the paperwork and signing at the closing