Commercial Lease Laws in Michigan
Don't sign a lease in Michigan until you understand the local statutes, tax implications, and common landlord traps.
Key Statutes & Considerations
For older industrial or former service-station sites, require a Phase I environmental review and allocate baseline environmental compliance/cleanup to the landlord unless the tenant caused it.
Michigan winters make snow removal and lot maintenance expensive. Require itemized CAM statements, exclude capital replacements, and clarify responsibility for potholes, resurfacing, and drainage.
Common Red Flags in Michigan
Commercial real estate in Michigan typically favors the landlord in standard lease drafts. Whether you are in Lansing or elsewhere, you need to watch out for:
- Uncapped NNN Charges: Variable costs like property taxes and insurance can skyrocket.
- Broad Indemnification: Clauses that require you to pay for the landlord's negligence.
- Relocation Clauses: Rights for the landlord to move your business to a worse location.
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Frequently Asked Questions
Is a Triple Net (NNN) lease legal in Michigan?
Yes, NNN leases are the industry standard for commercial retail and office space in Michigan. They shift the burden of property taxes, insurance, and maintenance to the tenant.
Can I negotiate my commercial lease in Michigan?
Absolutely. Unlike residential leases, commercial leases are presumed to be negotiated between equal parties. Never sign the first draft.