Commercial gross lease agreement1 / 4
Sample document · fictional information
COMMERCIAL GROSS LEASE AGREEMENT
1000 Example Commerce Drive, Springfield, Illinois 62703
This Commercial Gross Lease Agreement (this “Lease”) is dated September 1, 2026, by and between Example Property Holdings, LLC (“Landlord”) and Sample Distribution Co., LLC (“Tenant”).
1. BASIC LEASE INFORMATION
PremisesSuite 200, containing approximately 4,800 rentable square feet.
CommencementOctober 1, 2026
Term48 months, expiring September 30, 2030.
Lease typeFull-service gross lease
Building IDDEMO-1000 · Parcel 00-00-000-000 · Sample County
2. PREMISES AND DELIVERY. Landlord leases the Premises to Tenant together with nonexclusive use of the common drive aisles, loading area, parking, and access routes. Delivery will be broom-clean with the building systems serving the Premises in working order.
Tenant accepts the Premises in its existing condition except for the fictional delivery items listed in Exhibit A: fresh paint, LED lighting, and one operable dock-leveler.
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3. RENT AND LEASE ECONOMICS
Tenant shall pay Gross Rent of $6,000.00 per month in advance on the first day of each month. Rent includes the Base Year share of operating expenses, property insurance, common-area maintenance, and ordinary building services.
Months 1–12$6,000.00 / month · $72,000.00 annual
Months 13–24$6,180.00 / month · $74,160.00 annual
Months 25–36$6,365.40 / month · $76,384.80 annual
Months 37–48$6,556.36 / month · $78,676.32 annual
3.1 ANNUAL ADJUSTMENT. Gross Rent increases by 3% on each anniversary of the Commencement Date. A partial month will be prorated on a 30-day basis.
3.2 EXPENSE RECONCILIATION. Beginning in 2027, Tenant pays its 12% pro-rata share of increases in controllable operating expenses above the 2026 Base Year. Separately metered electricity, after-hours HVAC, and extraordinary waste removal are paid by Tenant.
4. SECURITY DEPOSIT. On execution, Tenant shall deliver a $12,000.00 security deposit. The unapplied balance will be returned within 30 days after surrender, subject to this Lease.
5. PAYMENT TERMS. Payments will be made by ACH through the property manager portal. Amounts more than five days late incur a 5% late charge; holdover rent is 150% of the final monthly Gross Rent.
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6. USE, SERVICES, AND RISK
6.1 PERMITTED USE. The Premises may be used for warehousing, product distribution, and incidental office use, and for no other purpose without Landlord’s prior written consent.
6.2 ACCESS AND PARKING. Tenant has 24-hour keyed access, shared use of two loading positions, and 14 unreserved parking spaces. No overnight vehicle storage or outdoor inventory is permitted.
7. UTILITIES AND SERVICES. Landlord furnishes water, common-area electricity, heating and cooling during normal business hours, trash removal, snow service, and common-area janitorial service. Tenant pays separately metered in-suite electricity and requested after-hours HVAC.
8. MAINTENANCE AND REPAIRS. Landlord maintains the roof, structure, common areas, and base building systems. Tenant maintains the interior, trade fixtures, and damage caused by its employees, contractors, or invitees.
9. INSURANCE. Tenant will maintain commercial general liability coverage of $1,000,000 per occurrence and $2,000,000 aggregate, property coverage for its contents, and business-interruption insurance. Certificates are due before occupancy and at every renewal.
10. ALTERATIONS AND SIGNAGE. Non-structural alterations require prior written approval and all required permits. One suite-panel sign and one monument-panel insert are permitted subject to the building’s sign criteria.
11. ASSIGNMENT. Tenant may not assign this Lease or sublet the Premises without Landlord’s prior written consent. A permitted transfer does not release Tenant from its obligations.
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12. OPTIONS, DEFAULTS, AND NOTICES
12.1 RENEWAL OPTION. Tenant has one additional three-year option if no default exists. Tenant must exercise the option by written notice at least 180 days before the current Term expires. Renewal rent will be the greater of fair market rent or the final month’s rent increased by 3%.
13. DEFAULT. Nonpayment continuing five days after notice, or another breach continuing 30 days after notice, is a default. Landlord may recover possession and pursue remedies available under Illinois law, subject to any duty to mitigate damages.
14. CASUALTY AND CONDEMNATION. Rent abates proportionately while insured casualty damage makes the Premises unusable. Either party may terminate if restoration cannot reasonably be completed within 180 days or if a material portion is taken for public use.
CRITICAL DATES IDENTIFIED
COI dueSeptember 24, 2026
Rent startsOctober 1, 2026
Renewal noticeNo later than April 3, 2030
Term expiresSeptember 30, 2030
15. NOTICES. Notices to Landlord: Example Property Holdings, LLC, 100 Example Plaza, Springfield, IL 62701; lease-notices@example.com. Notices to Tenant: Sample Distribution Co., LLC, at the Premises; tenant-notices@example.com.
LANDLORDAuthorized signature / date
TENANTAuthorized signature / date
Demonstration content only. All names, addresses, dates, amounts, and identifiers are fictional and are shown solely to demonstrate automated lease review.
