Michigan Commercial Lease: Types, Key Terms To Know, Costs

Reviewed for legal accuracy by Forest Hamilton JD

Quick Facts — Commercial Lease Lawyers

A Michigan commercial lease is a contract or rental arrangement between a landlord and a tenant for the use of commercial space. To protect both parties' rights, avoid abuse of those rights, and ensure that both parties are aware of each other's duties, it is essential to know the disclosures and sections that need to be included in a commercial lease before signing it.

Michigan Commercial Landlord/Tenant Laws

  • Like most U.S. states, Michigan commercial lease also requires a lead paint disclosure for buildings built before 1978. Hence, landlords must disclose the use of lead paint in their buildings to the tenants in the agreement.
  • The firm holding the security deposit must be disclosed by the landlord in the lease agreement. They must also disclose the account number and whether it is an interest-bearing account to the tenant.
  • The rental agreement must include provisions for all expenses, such as property taxes and insurance.
  • The agreement must list all spaces, including parking spots, that are paid for as part of the rental agreement.
  • Landlords must disclose what type of modifications are allowed to be done on the property.
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Key Terms Related to Michigan Commercial Lease

  • Percentage Lease : In a percentage rent lease, you will be required to pay base rent as well as a percentage of gross sales beyond a predetermined threshold. Before renting out the space, the percentage and the minimum necessary sales are agreed upon.
  • Trade Fixtures: Trade fixtures are objects in the rental space that you are allowed to take with you when you leave.

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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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Melissa G. on ContractsCounsel
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Melissa G.

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I provide practical, plain-English legal guidance to solopreneurs and small businesses who want to build strong foundations and make informed decisions with confidence. With 20+ years of experience—including 16 years in-house advising senior and executive leaders—I bring the insight of a trusted legal partner who understands how legal strategy supports long-term business growth. My clients walk away feeling supported, seen, and empowered. They know I genuinely care about their success and bring more than just legal knowledge—I bring a coach’s mindset, a problem-solver’s lens, and a commitment to helping them protect what they’ve worked hard to build. Whether you’re reviewing contracts, forming your business, protecting your brand, or need ongoing legal support, I’m here to deliver clear, actionable guidance and solutions that fit your business.

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Small Business

Commercial Lease

North Carolina

Asked on Apr 22, 2023

What's the repair responsibility in a commercial lease?

I am a small business owner in the process of signing a commercial lease for a retail space. I am trying to understand my responsibilities as the tenant regarding repairs and maintenance of the property. I want to make sure I understand what my repair responsibility is in the lease before signing it.

N'kia N.

Answered May 30, 2023

In a North Carolina commercial lease agreement, it is common for the landlord to be responsible for major maintenance and repairs (including structural issues) and the tenant to be responsible for minor maintenance and repairs (including general wear and tear). However, the landlord and the tenant may agree to alternative arrangements in the written lease. The best way to more fully understand your specific maintenance and repair responsibilities under a specific lease agreement is to have an attorney review the agreement and discuss it with you. Good luck!

Read 1 attorney answer>

Real Estate

Commercial Lease

Florida

Asked on Apr 17, 2023

What's permitted alterations in a commercial lease?

I am a small business owner looking to rent a commercial space for the first time. I am considering signing a commercial lease and want to know what kind of alterations are allowed in the agreement. I would like to avoid any potential legal issues or disputes in the future by clarifying what is permitted before signing the lease.

Moss S.

Answered Apr 28, 2023

Usually permitted alterations are cosmetic, and non-structural in nature. Often times the Landlord will require the Tenant to submit plans, or in the alternative the lease will describe the fit and finish that would be allowed.

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Commercial Real Estate

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Maryland

Asked on Apr 27, 2023

What are the notice requirements for terminating the lease?

I am a business owner who recently signed a commercial lease for a property. I am looking to terminate the lease but am unsure of the notice requirements I must adhere to in order to do so. I would like to know what the notice requirements are for terminating the lease so that I can ensure I do not breach the terms of the lease.

Michael C.

Answered Jun 1, 2023

The notice requirements for terminating a commercial lease in Maryland are going to vary depending on the specific terms of your lease agreement. Please read and refer to your lease. If your lease is month to month, then it's likely you'll have to provide at least 30 days notice. If your lease is for a longer term (6 to 12 months), it's likely you'll have to provide at least 90 days notice, and may need to pay damages for breach of the lease agreement.

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Real Estate

Commercial Lease

California

Asked on Apr 21, 2023

What's the property description in a commercial lease?

I am a small business owner who is looking to lease a property for my business. I am currently reviewing a commercial lease and am trying to understand what is included in the property description in the lease. I am hoping to gain more clarity on what the property description entails and how it affects my business.

Gagandeep K.

Answered May 24, 2023

A property description in a commercial lease has to sufficiently identify the extent and boundaries of the property being leased. For example, it can be described by a map reference or by metes and bounds, or include a description such as "that certain building on the south-westerly corner of California and Larkin Streets." The commercial lease will include defined terms such as "Building," "Property," and "Premises". The defined terms define/describe the "Property" on which the "Building" is located which has the "Premises"/"Space" that is being leased. A sample definition of is Property Description in a Commercial Lease: ""Property" means the real property on which the Building is located together with the Building and all appurtenant fixtures and personal property of Landlord used in the operation of the Building and/or the Property, and any other improvements now existing or hereafter constructed thereon[, including the parking lot, walkways, and landscaped ground as depicted on the site plan attached hereto as Exhibit [LETTER]]."

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Litigation

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Asked on Apr 14, 2023

What's the survival clause in a commercial lease?

I am looking to enter into a commercial lease for my new business. I am unfamiliar with the terms of a commercial lease, and am particularly interested in understanding the survival clause. This clause is important to me because I want to make sure I am fully aware of my rights and responsibilities as a tenant. I need to know what is expected of me should the lease be terminated prematurely.

Curt L.

Answered Apr 28, 2023

A survival clause is fairly standard in a lease. It extends the effectiveness of certain provisions, such as party representations, warranties, promises, and covenants beyond the expiration or termination of the lease, but not beyond the legally prescribed statute of limitations. For example, If you make a fraudulent representation in a 1-year lease, the other party to the lease who is damaged by your fraud could still sue you for that fraud even after the end of the 1-year lease.

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