Michigan Commercial Lease Guide

Commercial Lease Guide for Michigan

A practical, tenant-focused guide to reviewing Michigan commercial leases — not legal advice.

Key Lease Considerations

Michigan leases often look simple on rent but complex on costs: winter maintenance, parking lot repairs, and building-system obligations can add up fast.

In older industrial and mixed-use areas, environmental clauses can also be a major risk. This guide helps you budget all-in occupancy cost and negotiate clear limits on repairs, replacements, and storm/snow items.

Major markets

Where we see the most leasing activity.

Detroit
Grand Rapids
Ann Arbor
Lansing
Kalamazoo

Common lease types

Typical structures and what to watch.

Retail: NNN or modified gross (CAM definitions and reconciling snow costs)
Industrial: NNN (roof, pavement, yard, and loading areas)
Office: modified gross or full service (escalations, utilities, and after-hours HVAC)

Cost drivers

Items that often create surprise bills.

Snow/ice removal and winter exterior maintenance
Parking lot maintenance (potholes, drainage, resurfacing)
Roof/HVAC responsibility and “repair vs. replacement” definitions
Environmental representations/indemnities (especially older sites)
CAM management/admin fees and capital replacement pass-throughs

Negotiation checklist

Get a true CAM/NNN budget

Ask for an itemized CAM budget and last year’s reconciliation. Require audit rights and exclusions for landlord overhead, leasing costs, and capital replacements (or require amortization).

Define snow + slip/fall responsibility

Write down who clears what (sidewalks, parking, loading areas, roof) and the service level. Avoid vague “tenant responsible for all snow” clauses without a budget.

Parking lot and pavement limits

Clarify who pays for potholes, striping, drainage, and resurfacing. If the tenant maintains exterior areas, negotiate caps and exclude capital resurfacing projects.

Repairs vs. replacement clarity

Spell out who pays for replacement of major systems (roof/HVAC). If you maintain equipment, limit replacement liability or use an amortization approach.

Environmental clause sanity check

Avoid broad “tenant liable for pre-existing contamination” language. If the property has industrial history, ask for appropriate due diligence and allocate baseline conditions fairly.

Rent start tied to usability

Tie rent commencement to delivery of a usable premises and required approvals (buildout completion, permits/CO if applicable, and landlord work).

Default language you can survive

Add written notice + cure periods, cap late fees/interest, and avoid acceleration language and unlimited attorney-fee shifting.

Official resources

Michigan LARA — Corporations & Commercial Licensing Michigan Department of Treasury Michigan SBDC

Not legal advice. Always verify local requirements and consult qualified professionals for your situation.

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.

LeaseGuard AI

Instant Lease Review

Upload your Michigan commercial lease PDF. Our AI scans it against thousands of risk factors and local best practices.

Upload PDF Now

Takes less than 2 minutes.

Other Tools

Frequently Asked Questions

Are NNN leases common in Michigan?

Yes — many retail and industrial properties are NNN or modified gross. The key is getting a clear CAM definition, a written budget, and reconciliation/audit rights so costs don’t surprise you.

What’s the biggest winter-related lease risk?

Snow/ice removal and parking lot liability. Make sure responsibilities and service levels are written down and tied to a budget if costs are passed through CAM.

How should I handle “environmental” language in a Michigan lease?

Treat it as a major risk area, especially for older or industrial-adjacent sites. Avoid broad liability for pre-existing conditions and clarify what the tenant is (and isn’t) responsible for.

How do I avoid a surprise HVAC or roof replacement bill?

Define repair vs. replacement in writing and negotiate caps or amortization for capital items. Don’t accept vague “tenant maintains HVAC” language without limits.

Does BizLeaseCheck provide legal advice?

No. It helps you spot common risks and compare leases quickly, but it’s not legal advice. Use it alongside qualified professional review for your situation.