What’s In Your Lease?


WHAT’S IN YOUR LEASE- - Tag - Blog Header

What’s in your lease and what should you be looking for? While TAG is here to help you fully understand the terms, we believe an educated client is a happy client. Here are a few basics items to look for and be aware of:

Business terms: Double check that the business terms agreed to in Letter of Intent are the same as in the lease document.

Sublease clause: Reasonable consent should not be withheld by landlord. Landlord will ask for 100% of profits. A 50/50 split is fair. Seek to minimize notice to landlord and response time from landlord. Consent shall not be necessary for purchase, sale, or merger.

Hold-over clause: Landlord will ask for 200% of rent. However, 150% is fair and market.

Renewal Clause: Landlord may ask for automatic renewal if no notice. This is not acceptable. It’s nice to have rights to space. Negotiate rate when possible as it will still be negotiable at that time.

Work letter: This should be studied closely to make sure everything matches up to what landlord said he was going to deliver. If there is an allowance, base building items should be taken care of by landlord. If landlord is constructing, make sure he is liable if he doesn’t deliver on time.

Right to Terminate: Can be a great source of leverage to restructure lease regardless of how market has changed since execution.

Surrender of Premises: Space shall be returned in broom clean condition, nothing more. Landlord may ask for space to be returned to white box. That is unacceptable.

Taxes & Operating Expenses: It’s important to make sure capital improvements are not passed along to tenants through operating expenses. If gross lease, should be a Base Year.

Insurance requirement: Have a qualified insurance broker review coverage requirements.

Damage or Destruction by Casualty: Seek to minimize time in which lease can be terminated, and maximize the remedies available to tenant.

Bonus: It’s very important to have an experienced real estate attorney review the legal terms of the lease. Also, it can be a great advantage to have an experienced commercial real estate broker negotiate the business terms of the lease. They are paid by the landlord through a fee that already exists.

2055 W. Army Trail Road in Addison, IL


2055 W. Army Trail Road in Addison, IL 2

DescriptionHere’s a unique opportunity to sublease suite 134 (11,046 SF) in a Class B building at 2055 W. Army Trail Road in Addison, IL. The sublease is available now through September, 30 2022. The building is located at the corner of two high-traffic roads, I-355 and Army Trail Road, and it features an office space, warehouse and a showroom with plenty of storage and an onsite management team.

The space is in a class b office and warehouse with a showroom space included. The suite features loading docks with two garage door entrances, ten offices, three conference rooms, four workstations and two small storage rooms.

The building is conveniently located at the four-way interchange of I-355 & Army Trail Rd. with a Pace bus stop adjacent to the park. It has high visibility to I-355 and Army Trail Road (127,716 vehicles per day (VPD) on I-355 and 58,700 VPD on Army Trail Road), and is located near a fitness center, hotels, restaurants and a golf resort. The building is only 22 minutes from O’Hare Airport and 34 minutes from Midway Airport.

The park features a single-story office/flex building with loading available truck dock(s) and drive-in door access. Building signage is available, and there are 517 parking spaces available for the property. The building has a nine foot ceiling height in the office, and twelve foot ceilings in the warehouse.

The individual suite features a tenant-controlled HVAC, 24/7 access, in-suite washrooms, mail, FedEx and UPS services and it is fully sprinklered.

Size: 11,046 SF of space split between a warehouse (831 SF), large storage space (1,231 SF), two training rooms (516 SF and 985 SF) and a showroom (1,598 SF).

Cost : $9/SF

Location: 2055 W. Army Trail Road in Addison, IL 60101

10.5 Acre Property in Elkhorn, Wisconsin


Description: A 10.5 acre property is available for development. The property is 10 minutes from Lake Geneva and Lake Delevan. The nearby area has over 100,000 full-time residents with over 300,000 visitors per year. The adjacent business park has over 4,500 visitors per day, and the traffic count for I43 is 22k per day and for route 67 it is 9k per day. The site will feature a Love’s Travel Center, as well as a Fairfield Marriott hotel with 70 rooms. It is a great opportunity for a restaurant and other retailers to cater to the Marriott and Love’s guests, as well as the industrial park traffic.

Size: 10.5 acres

Location: Elkhorn, Wisconsin. I-43 and South 67.

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