Michigan Commercial Lease Agreement

Last Updated: December 22, 2023 by Cameron Smith

A Michigan commercial lease agreement is a binding contract for a tenant to lease retail, office, or industrial space. The agreement sets the rights and responsibilities for both tenants and landlords, as well as details about rent, deadlines, penalties, and other items.

The Michigan law that governs commercial leases is Michigan Uniform Commercial Code, Act 175, Part 5. These types of leases are more complicated than a residential lease, so working with an attorney is advisable.

Michigan Commercial Lease Requirements

The following is required for Michigan commercial leases:

  • Statute of Frauds – Any contract of 12 months or longer must be in writing. As commercial leases tend to be multiyear contracts, this statute is almost always applicable.

Writing Michigan Commercial Lease Agreements

A Michigan commercial lease agreement should generally contain the following:

  • Landlord’s information
  • Property manager’s information (if any)
  • Tenant’s information
  • Description of the property
  • Authorized use of the property
  • Type of lease (gross, modified-gross, or triple-net)
  • Term of the lease and the commencement date
  • Option to renew the lease (if any)
  • Rent and landlord’s profit participation in operations (if any)
  • Penalty for late/non-payment of rent (including eviction process)
  • Designation of the responsible parties for certain expenses and utilities
  • Security deposit and refund policy
  • Permissible leasehold improvements
  • Place for the signatures of all parties
  • Miscellaneous terms specific to the lease

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