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Common Pitfalls That Can Affect Commercial Leases

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Naperville commercial lease agreementMost businesses need space where they can operate, requiring them to lease property from a landlord. Commercial lease agreements can be complicated, and tenants will need to be aware of how the terms of a lease will affect their ability to conduct business, the expenses they will be required to pay, and other unexpected issues that may arise. By understanding some of the lease-related pitfalls that commercial tenants commonly encounter, a business owner can avoid these problems and ensure that they will be able to conduct business successfully.

Commercial Leasing Issues That May Affect Tenants

Business owners will need to fully understand the terms of a commercial lease. Some issues that should be addressed when negotiating a lease agreement include:

  • Common area maintenance (CAM) - A lease may require tenants to contribute toward operating expenses or other costs related to common areas on a property. This may result in additional rent being charged on top of standard rent payments. Tenants should be aware of the types of CAM expenses they may be required to pay, including capital improvements or expenses related to other tenant suites that are not exclusively common areas. In some cases, a lease may place a cap on operating expenses, or it may limit the types of expenses a tenant will be required to pay.
  • Exclusive use - A landlord may agree that a tenant will have exclusive use rights, meaning that the landlord will not allow other tenants at the building to use their leased space for uses similar to the tenant’s exclusive use. A tenant will need to confirm that their lease agreement contains an exclusive use clause that protects their interests.
  • Maintenance and repairs - A lease should detail the responsibilities that apply to both the landlord and the tenant regarding property maintenance or repairs to a building’s structure or equipment. Tenants will want to be sure to understand whether they will be required to pay for major repairs, replacement of HVAC systems or other equipment, or any other structural or mechanical maintenance or repairs.
  • ADA compliance - A building may need to be modified to ensure that is accessible to people with disabilities. Tenants will need to be sure to understand who will be responsible for making these updates or addressing any other issues related to compliance with the Americans With Disabilities Act.

Contact Our Naperville Commercial Lease Agreement Attorney

Before signing a lease agreement, it is crucial to fully read the document and understand all terms that apply to a tenant. Failure to fully review a lease agreement could result in a number of unexpected expenses or other issues that may affect a business. At Lindell & Tessitore P.C., we can help business owners review lease agreements, address concerns about expenses or other issues, and negotiate favorable terms that will allow them to operate their businesses successfully. To learn more about our legal services, contact our DuPage County commercial lease lawyer at 630-778-3818.


dupage county real estate lawyerSince the onset of the COVID-19 pandemic in 2020, businesses in Illinois and throughout the United States have encountered financial difficulties. As the country is beginning to return to normalcy, some businesses have been able to resume their regular activities and continue operating successfully. However, many businesses are still struggling as they determine how to respond to the loss of revenue that occurred due to the pandemic. These issues have affected many commercial leases, and both landlords and tenants may need to determine how to address situations where a business has been unable to pay rent on a short-term or long-term basis. 

Negotiating Lease Modifications for Commercial Landlords and Tenants

As commercial tenants have encountered financial struggles, this has put many landlords in a difficult position. While some landlords many have pursued lease enforcement actions, others may have been hesitant to do so due to the difficulty of finding new tenants in the current marketplace. Rather than pursue evictions or take steps to terminate a lease, it may be beneficial for both parties to negotiate lease modifications that will allow a tenant to continue occupying a space as they attempt to address their ongoing financial issues.

Some lease modifications that landlords and tenants may consider during negotiations include:


Naperville CRE attorneyMost everyone knows what it feels like to plan something and set expectations on the outcome, only to encounter an obstacle along the way. Almost immediately, the bottleneck increases stress levels - because, as everyone knows, complications lead to delays and less than optimal results.

In the commercial real estate (CRE) industry, the space in which these losses occur in are known as “expectations gaps.” For the commercial investor and their team, the consequences of a gap can be dire, resulting in lengthy delays and lost income. Learn more about what causes these gaps, and how your firm can overcome them, in the following sections.

CRE Lawyers and CRE Investors - Results vs Expectations 


Oak Brook commercial real estate attorneysWith widespread mall closures for retailers like Nordstrom, JC Penny, and Macy's, commercial real estate owners are scrambling to fill space. Two major mall franchises have announced plans to add CBD shops to their list of retailers. Learn more about this interesting development in the commercial real estate (CRE) industry, and how it could impact your bottom line.

Mall Franchises Partner with Major CBD Retailer

Two mall franchises, Simon Property Group and Brookfield Properties, recently announced their plans to partner with the major CBD retailer, Green Growth Brands. More than 200 CBD shops will be opened in malls across the country over the next year. With a strong growth history and high-quality products, the CBD company is expected to flourish inside of malls.

Oak Brook commercial real estate attorneysWith more restaurants offering delivery services to their customers, and the popularity of food delivery services rising, the interest in the restaurant investment sector is growing at an unprecedented rate. Unfortunately, far too many investors dive into this industry without fully understanding its risks and nuances. As a result, they increase their risk of significant financial loss. Be proactive and avoid such a fate with help from the following information.

A Closer Look at the Restaurant Investment Boom

From a distance, it might appear that the entire restaurant industry is booming. However, upon closer inspection, current trends indicate that growth is confined mostly to Class A properties. All other properties are seeing little (if any) growth - and in many areas, closure rates for Class B and C restaurants are increasing. As such, investors wishing to break into the restaurant sector are encouraged to focus their sights on high-end properties. Just keep in mind that, because of the current boom, competition in the Class A restaurant sector is exceptionally high.

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