Chicago Commercial Lease Attorney
A Chicago commercial lease attorney who is familiar with the local practices is an important adviser. A Chicago commercial lease transaction is usually first formalized is non-binding letter of intent. Note that the letter of intent may also be binding, depending upon the intent of the parties as expressed in the written letter of intent. The major terms addressed in the letter of intent usually include, among others, the following terms.
- Annual base rent per square foot;
- Term of the lease in years;
- NNN Terms – whether property taxes, maintenance and insurance are passed through to the tenant;
- Build out credits also known as “tenant improvement dollars” – the dollar amount, if any, the landlord will contribute to tenant’s build out of the property. Note that landlords generally expect to recover build out credits over the life of the lease.
- Rent abatement period – a landlord concession to the tenant to help the tenant reduce cash expenses during a couple of months at the startup of tenant’s business. Note that landlord generally expect to recover rent abatement concessions over the life of the lease.
Next, the landlord and the tenant will each retain their own Chicago real estate lawyer to negotiate, draft, review, and revise a formal, binding commercial lease.