60-Second Answer: What You’re Actually Signing

1. Commercial leases are almost never form documents. Landlords draft them to favor themselves. Tenants who sign without review usually agree to things they didn’t realize.
2. The rent number in the headline is rarely the real rent. Base rent plus CAM plus real-estate-tax passthroughs plus insurance reimbursement plus utilities plus HVAC repair caps can double the effective monthly cost.
3. Personal guarantees are standard and dangerous. A small-business tenant signing personally can end up liable for the full remaining term even if the business fails.
4. Illinois commercial eviction is fast. There’s no RLTO, no right-to-cure in many cases, and landlords have remedies residential tenants would find shocking.
5. A 30-minute review often catches $20,000 to $200,000 in future exposure. The math on a lease review is better than almost any other legal spend.

The Four Lease Structures You’ll See in Illinois

Before the lease gets reviewed, you should know which type of lease is in front of you. The lease type tells you who pays what.

Lease Type	Tenant Pays	Common Use
Gross (full-service)	Base rent only; landlord covers taxes, insurance, maintenance, utilities	Office towers, some medical
Modified gross	Base rent plus tenant share of certain operating expense increases over a base year	Suburban office, small retail
Triple net (NNN)	Base rent plus pro-rata share of taxes, insurance, and CAM	Retail, industrial, single-tenant buildings
Absolute net (bondable)	Everything, including roof and structure; tenant is essentially the owner during the term	National-credit single-tenant deals

If your lease says “NNN” at the top but the base-year adjustments and CAM passthroughs look like a modified gross, somebody’s being sloppy. The structure drives the economics. Getting the type right is the first thing the review catches.

The Twelve Lease Provisions That Matter Most

Here’s what I actually look for on a typical commercial lease review. The order matters. The first few are deal-killers if they’re wrong.

1. Personal Guarantee

Does the tenant sign as the business entity, or is there a personal guarantee? Is the guarantee full-recourse or capped? Does it burn off after a certain number of months of on-time rent? If the tenant is signing personally with no cap and no burn-off, that is the single biggest exposure in most small-business leases.

2. Term and Renewal

What’s the initial term? Are there renewal options? Are renewals at market rent, fixed bumps, or the tenant’s option? Automatic renewals with 12-month notice requirements are traps.

3. Base Rent and Escalations

Fixed annual bumps, CPI-indexed bumps, or tied to market reappraisal? CPI escalation without a cap can get brutal in a high-inflation year.

4. CAM and Operating Expense Pass-Throughs

What’s included in CAM? Is capital work excluded or included? Is there a cap on year-over-year increases? Is the landlord required to provide an audit right? Without an audit right, a tenant has no way to verify CAM is calculated correctly.

5. Real Estate Tax Pass-Through

Is the tenant paying pro-rata share of the whole property’s tax bill, or just the portion allocable to the leased premises? Does the tenant get credit for landlord tax appeals?

6. Use Clause

What’s the permitted use? Exclusive use (no competing tenants in the same center)? Change-of-use restrictions? A narrow use clause can tank resale value if the tenant wants to assign.

7. Assignment and Subletting

Can the tenant assign or sublet? What’s the landlord’s consent standard (reasonable vs. sole discretion)? Recapture rights? Assignment fees? Does a change of control count as an assignment?

8. Defaults and Cure Periods

What’s a default? How much notice before termination? What’s the cure period for monetary defaults vs. non-monetary? Illinois commercial landlords often want 5 days or fewer on monetary default. That’s aggressive.

9. Landlord Remedies

Can the landlord accelerate rent on default? Re-let the space and hold the tenant liable for the shortfall? Take possession without going to court (self-help)? Illinois allows commercial self-help in limited circumstances under 735 ILCS 5/9-101 and following.

10. Repair and Maintenance

Who repairs the roof, HVAC, structural walls, parking lot, plumbing stack? Who pays when each breaks? Is there a cap on the tenant’s annual repair obligation?

11. Insurance Requirements

What’s the required commercial general liability limit? Property insurance? Business interruption? Named-insured and waiver-of-subrogation language? Over-scoped insurance requirements can add thousands to a tenant’s annual cost.

12. Subordination, Non-Disturbance, and Attornment (SNDA)

If the landlord defaults on its mortgage, does the lender have to honor the lease, or can the tenant be kicked out? A tenant without SNDA protection is one foreclosure away from eviction.

Real Money, Real Leases, Real Misses

Every number below comes from a real commercial lease I’ve either reviewed, negotiated, or cleaned up after.

What Got Missed	Dollar Exposure
Full-recourse personal guarantee on a 10-year $6,000/month lease; tenant’s business failed in year 3	$504,000 personal liability
CAM pass-through had no cap; landlord billed tenant for parking lot resurfacing	$38,000 unexpected one-year bump
HVAC repair obligation with no cap; rooftop unit failed year 2	$22,000 tenant replacement cost
No SNDA; landlord foreclosed and lender terminated lease mid-term	Forced relocation, lost tenant improvement investment
Exclusive use clause missing; competing tenant opened next door	30-50% revenue loss, no remedy
Assignment clause required “sole discretion” consent; tenant couldn’t sell the business	Business became unsellable, goodwill destroyed
Hiring me to read and mark up the lease before signing	$350-$500 typical total

Landlords and Tenants Need Different Reviews

I represent both sides on commercial leases, but not on the same deal.

Tenant-Side Review

Focused on limiting downside: personal guarantee caps, CAM caps, defined default and cure, assignment flexibility, SNDA protection, exit ramps if the business closes. Most small-business tenants I work with are first-time commercial tenants. They don’t realize what’s negotiable until I show them.

Landlord-Side Review or Drafting

Focused on protecting the income stream: clear payment obligations, fast cure periods, acceleration rights, full-recourse guarantees, flexible reclassification of operating expenses, restricted assignment. Landlords who use a generic template are often surprised at how many holes a focused attorney review fills.

Why Commercial Eviction Moves So Fast

If you’re reading this because you’re already in trouble, not just signing a lease, it’s worth understanding where you stand. Commercial eviction is governed by the Illinois Eviction Act, 735 ILCS 5/9. Commercial tenants do not have:

• RLTO protections (those are residential-only in Chicago).
• A general right to withhold rent for repairs.
• A statutory right to cure in most default scenarios (it’s whatever the lease says).
• The extended timelines that residential tenants often experience in overloaded dockets.

Landlords with a tight lease can move from default to order for possession in under 45 days in most counties. If you’re a commercial tenant facing default, the call you want to make is to your attorney, not your landlord.

Why Have Me Review Your Commercial Lease

• Licensed in Illinois since 2015. ARDC #6311917. Verify at iardc.org.
• Published hourly rate. $350/hour, minimum $350. Most reviews under $500.
• Same-day turnaround on standard reviews. Send the lease in the morning, get the memo by end of day on most engagements.
• I answer the phone. Questions during negotiation are included in billed hours, not billed as separate calls.
• Both sides of the table. I represent tenants and landlords, which means I know exactly what the other side is arguing for.
• Coverage across Illinois. Chicago, collar counties, central Illinois, Peoria.

Frequently Asked Questions

How much does a commercial lease review cost in Illinois?

Hourly at $350, minimum one hour. Most standard commercial lease reviews come in under $500 total. Complex multi-tenant, ground lease, or build-to-suit work is quoted at engagement.

How long does a typical review take?

Same day for straightforward reviews. A typical small-retail or small-office lease reads and marks up in 60-90 minutes. More complex leases take longer but I communicate the scope before starting.

Can I just sign the lease and fix issues later?

No. The signed lease is what governs. Issues surface years into the term, usually when it’s expensive to fix. Review before signing is the only time the terms are fully negotiable.

Does the landlord have to negotiate?

Not legally. In practice, almost every landlord has negotiating room on some terms. Large institutional landlords are stingier; local and regional landlords are often more flexible than tenants expect.

What’s the single most negotiable item?

Personal guarantee scope. Full-recourse unlimited personal guarantees are common in drafts, but a cap, a burn-off period, or a good-guy clause (personal liability ends when tenant vacates and pays arrears) is almost always negotiable with effort.

What if my lease is already signed?

I’ll still review it. Knowing exactly what you agreed to helps you plan renewals, subletting, assignment, or exit. Some issues are fixable through an amendment at renewal or a landlord consent request.

Do you handle commercial evictions?

Yes. Commercial evictions are priced separately from the flat-fee residential schedule because lease terms drive complexity. Quoted at engagement based on the specific lease and default.

Do you draft leases from scratch?

Yes, for landlords and owner-occupiers. Drafting from scratch is more time than reviewing an existing draft, so budget accordingly. Quote at engagement.