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Michigan Commercial Lease

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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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Stacey D. on ContractsCounsel
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5.0 (32)
Member Since:
July 16, 2020

Stacey D.

Attorney
Free Consultation
Grand Rapids, MI
14 Yrs Experience
Licensed in FL, MI
Stetson University College of Law

I enjoy helping businesses of all sizes succeed, from start-ups to existing small and medium sized businesses. I regularly advise corporate clients on a variety of legal issues including formation, day to day governance, reviewing and drafting business contracts and other agreements, business acquisitions and sales, as well as commercial and residential real estate issues, including sales, purchases and leases. As an attorney licensed in both Michigan and Florida, I also advise clients on real estate issues affecting businesses and individuals owning real property in either state, whether commercial, residential or vacation/investment property. I also regularly assist nonprofit organizations in obtaining and maintaining tax exempt status, and provide general legal counsel on all matters affecting public charities, private foundations and other nonprofit organizations.

Melissa G. on ContractsCounsel
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5.0 (1)
Member Since:
August 5, 2021

Melissa G.

Managing Attorney
Free Consultation
Chicago
20 Yrs Experience
Licensed in DC, IL, MI, OH
University of Michigan

My name is Melissa “Mel” Green and I provide legal counsel to entrepreneurs, start-ups, and small businesses that is clear, concise, and focused on the practical impact of decisions. As trusted legal counsel, I proactively identify risks, and develop effective, practical solutions that protect my clients businesses, create positive outcomes, and help mitigate legal exposure. My areas of expertise include business formation, contract law/commercial transactions, healthcare law, and intellectual property. I also provide services as an outside general counsel or “fractional general counsel”. Prior to starting my own law firm, I spent the majority of my career in-house at large and small corporations, both for profit and not-for-profit, working with senior and executive management, in addition to other stakeholders at a variety of management levels. to proactively identify and address risks, mitigate legal exposure, streamline processes, lead persuasive negotiations that are integral to ensuring positive outcomes for the organization, and deliver hands-on, spectacular client service. There came a time when I realized that individuals and smaller entities were not receiving the same level of legal support and guidance as mid-size to large companies and as a result, individuals and small businesses were not growing and sustaining on the same level. I wanted to use my expertise to provide those that were underserved by the legal market with competent counsel at an affordable price. With the increasing number of new businesses, I knew that I could make a difference to those that needed legal guidance but were putting it off in fear of “Big Law” prices. I love to “partner” with my clients, get a deep understanding of their business, develop lasting professional relationships and watch them prosper. I want to find a way to help my clients maximize the reach, value and impact of their business. Services that I have provided over the course of my career: (i) reviewing, drafting and negotiating commercial agreements (leases, MSAs and SOWs, consulting services agreements, confidentiality agreements, SaaS agreements, coaching agreements, independent contractor agreements, coaching agreements, photographer agreements, waivers and releases, licensing agreements, etc.), (ii) business formation (operating agreements, written consents, bylaws, etc.), (iii) preparing policies and procedures for businesses in highly regulated industries, (iv) conducting federal trademark searches and filing trademark applications/preparing trademark opinion letters after conducting appropriate legal research, and (v) general business counsel.

David H. on ContractsCounsel
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David H.

Technology Contract Attorney
Free Consultation
Michigan (virtual practice)
13 Yrs Experience
Licensed in MI
Western Michigan University - Thomas M Cooley Law School

Michigan licensed attorney. A compelling combination of technology, sourcing, sales, and legal experience. Over 20 years in technology positions negotiating technology engagements and contracts. General practice legal experience. Significant IT contracts experience (from IT sourcing/procurement) with the State of Michigan and Zimmer Biomet (Fortune 500). Excellent people, negotiation, and writing skills; keen eye for continuous improvement. Trusted business partner co-leading or supporting cross-functional integrated business/IT projects.

Blake L. on ContractsCounsel
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September 22, 2020

Blake L.

Attorney
Free Consultation
Farmington Hills, MI
29 Yrs Experience
Licensed in MI
Wayne State University Law School

I am a sole practitioner who has been in practice for over 25 years. I have represented many small businesses during this time. Let me bring my expertise to your business.

Christopher J. on ContractsCounsel
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August 4, 2020

Christopher J.

Attorney and Counselor at Law
Free Consultation
Ann Arbor, MI
25 Yrs Experience
Licensed in MI
Detroit College of Law at Michigan State University

Experienced attorney focusing on estate planning, probate administration, business formation and counseling, and consumer bankruptcy.

George B. on ContractsCounsel
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June 21, 2021

George B.

Attorney
Free Consultation
Detroit, MI
11 Yrs Experience
Licensed in MI
Western Michigan University - Cooley Law School

I help start-ups, small businesses, and people realize their potential by leveraging my legal and technological experience. Legally skilled in employment law, intellectual property, corporate law, and real estate transactions.

Brittany B. on ContractsCounsel
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December 4, 2021

Brittany B.

Attorney
Free Consultation
Ann Arbor, MI
10 Yrs Experience
Licensed in MI
Wayne State University Law School

Brittany advises startups and emerging and public companies at all stages of growth, with focuses on formation and corporate governance matters, securities, venture capital financings, M&A and other strategic transactions, commercial contracts and general corporate counseling. Brittany represents clients across a broad spectrum of industries, including technology, automotive, mobility, digital health, consumer products and manufacturing.

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Commercial Real Estate

Commercial Lease

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.

Read 1 attorney answer>

Real Estate

Commercial Lease

Texas

Asked on May 12, 2021

Should I use a lawyer for commercial lease?

It is a very long lease and I'm not sure what it says. I also don't want to pay a fortune to have it reviewed to eat into my budget.

George O.

Answered May 12, 2021

Yes! Before signing any contract/agreement/lease, or anything that appears to be a binding agreement, it is worth the money to have a lawyer review it. I charge a flat fee to review any and all agreements, so my clients know up front what they are paying, and they consider it a cost of doing business. The alternative, i.e. not having a lawyer review your agreements prior to signing, can be, and usually is, exponentially more expensive should a conflict arise (and they often do).

Read 1 attorney answer>

Real Estate

Commercial Lease

Florida

Asked on Apr 21, 2023

What's the force majeure clause in a commercial lease?

I am a small business owner who is in the process of signing a commercial lease for my business. I am concerned about the implications of force majeure clauses in the lease and would like to understand them better. I have read through the clause, but am not sure if it covers all of the situations that may arise and if there are any additional considerations that I need to take into account. I would like to understand the full implications of the clause and any additional steps I should take to protect myself.

Moss S.

Answered Apr 28, 2023

Force majeure is a provision that usually allows either party to delay completing an obligation in a lease. Force majeure is described as an act that is beyond the control of either party, such as a natural disaster, terrorism, or pandemic.

Read 1 attorney answer>

Commercial Real Estate

Commercial Lease

Maryland

Asked on Apr 12, 2023

Can the tenant make alterations to the property?

I am a tenant of a commercial property and I am interested in making some alterations to the property. I understand that I will need the landlord's permission to make these changes, but I am unsure of what the landlord's policy is regarding tenant alterations and what the legal implications of making such changes might be. I am looking for clarification on the tenant's rights and obligations when making alterations to a commercial lease agreement.

O.T. W.

Answered Apr 14, 2023

Hello! There should be an alterations clause in your lease that speaks to what is or isn't allowed in your space. Your safest bet is to have your landlord review and sign a letter of consent for more substantial improvements (beyond paint, mounting items, etc.)

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Real Estate

Commercial Lease

Texas

Asked on May 12, 2021

What is a triple net lease?

I want to understand these better.

George O.

Answered May 12, 2021

A triple net lease designates the tenant (lessee) as having the sole responsibility for any and all costs associated to the asset being leased in the agreement, with those costs being the net real estate taxes on the leased asset, net building insurance, and net common area maintenance. The lease received its name from the three “net” fees and may also be called a Net-Net-Net Lease.

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