Michigan commercial lease agreement template

Michigan Commercial Lease Agreement

This Commercial Lease Agreement (the "Lease") is made and effective as of [Date], by and between [Landlord Name], a [Landlord Entity Type] located at [Landlord Address] ("Landlord"), and [Tenant Name], a [Tenant Entity Type] located at [Tenant Address] ("Tenant").

1. Premises

• The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the premises located at [Premises Address], also known as Suite/Unit [Unit Number], and legally described as [Legal Description of Property] (the "Premises").
• The Premises contains approximately [Square Footage] square feet.
• Included Common Areas: [Description of Included Common Areas, e.g., parking, hallways, restrooms]
• Diagram/Floor Plan: [Reference to attached Exhibit A, if applicable]

2. Use of Premises

• Permitted Use: The Premises shall be used for [Description of Permitted Use, e.g., retail sales, office space].
  • Option A: Exclusive Use: Landlord agrees that Tenant shall have the exclusive right to operate a [Type of Business] within the building located at [Building Address].
  • Option B: Non-Exclusive Use: Tenant's use of the Premises is not exclusive.
• Prohibited Uses: The following uses are specifically prohibited: [List of Prohibited Uses, e.g., hazardous materials storage, adult entertainment].

3. Lease Term

• The term of this Lease shall commence on [Start Date] and shall continue for a term of [Number] years, expiring on [End Date], unless sooner terminated as provided herein.
• Renewal Option:
  • Option A: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Number] years each. To exercise this option, Tenant must provide Landlord with written notice at least [Number] days but no more than [Number] days prior to the expiration of the then-current term.
  • Option B: No Renewal Option.
• Expansion Option:
  • Option A: Tenant shall have the option to lease additional space adjacent to the Premises, if available. Tenant must provide Landlord with written notice at least [Number] days prior to needing the additional space. The terms and conditions for the additional space will be negotiated in good faith.
  • Option B: No Expansion Option.

4. Rent

• Base Rent: The base rent shall be [Dollar Amount] per [Month/Year], payable in advance on the [Day] day of each [Month/Quarter/Year] commencing on [Date].
• Payment Method: Rent shall be paid by [Method of Payment, e.g., check, electronic transfer] to Landlord at [Payment Address].
• Proration: For any partial month, rent shall be prorated on a per diem basis.
• Rent Escalation:
  • Option A: CPI Adjustment: Rent shall be adjusted annually based on the Consumer Price Index (CPI) for [Specific CPI Index], as published by the U.S. Bureau of Labor Statistics. The adjustment shall be effective on each anniversary of the Lease commencement date.
  • Option B: Fixed Increase: Rent shall increase by [Percentage]% annually on each anniversary of the Lease commencement date.
  • Option C: No Escalation.
• Late Payment:
  • Option A: A late fee of [Dollar Amount] shall be charged for any payment received more than [Number] days after the due date.
  • Option B: Interest shall accrue on any unpaid rent at a rate of [Percentage]% per month.
• Returned Check Fee: A fee of [Dollar Amount] will be charged for any returned check.

5. Security Deposit

• Tenant shall deposit with Landlord a security deposit in the amount of [Dollar Amount].
• Form of Deposit: The security deposit shall be in the form of [Form of Deposit, e.g., cash, certified check].
• Permitted Deductions: Landlord may deduct from the security deposit any amounts necessary to cover damages to the Premises beyond normal wear and tear, unpaid rent, or costs incurred as a result of Tenant's breach of this Lease.
• Return of Deposit: The security deposit, less any permitted deductions, shall be returned to Tenant within [Number] days after the termination of this Lease and Tenant's surrender of the Premises.
• Interest on Deposit: [State Whether Deposit Will Earn Interest and How It Will Be Paid. If yes, specify the rate and payment schedule. Michigan law may apply.]

6. Additional Payments

• Type of Lease: [Gross Lease/Modified Gross Lease/Net Lease/Double Net Lease/Triple Net Lease (NNN)]
• Common Area Maintenance (CAM):
  • Option A: Tenant shall pay [Percentage]% of all CAM expenses.
  • Option B: Landlord shall pay all CAM expenses.
• Utilities:
  • Option A: Tenant shall be responsible for paying all utilities, including [List Utilities, e.g., electricity, gas, water].
  • Option B: Landlord shall be responsible for paying all utilities, including [List Utilities, e.g., electricity, gas, water].
• Real Estate Taxes:
  • Option A: Tenant shall pay [Percentage]% of all real estate taxes.
  • Option B: Landlord shall pay all real estate taxes.
• Insurance:
  • Option A: Tenant shall pay [Percentage]% of the building's property insurance.
  • Option B: Landlord shall pay all property insurance.
• Other Operating Expenses: [Specify any other operating expenses and responsibility for payment.]

7. Maintenance, Repair, and Alterations

• Landlord's Responsibilities: Landlord shall be responsible for maintaining the roof, foundation, exterior walls (excluding glass), and common areas of the building.
• Tenant's Responsibilities: Tenant shall be responsible for maintaining the interior of the Premises, including all fixtures and equipment, and for keeping the Premises in a clean and safe condition.
• Alterations: Tenant shall not make any alterations or improvements to the Premises without Landlord's prior written consent, which shall not be unreasonably withheld.
• Restoration: Upon termination of this Lease, Tenant shall restore the Premises to its original condition, reasonable wear and tear excepted.

8. Assignment and Subletting

• Option A: Landlord's Consent Required: Tenant shall not assign this Lease or sublet the Premises without Landlord's prior written consent, which shall not be unreasonably withheld.
• Option B: Automatic Permission: Tenant may assign this Lease or sublet the Premises with written notice to Landlord.
• Option C: Prohibition: Tenant shall not assign this Lease or sublet the Premises.

9. Compliance with Laws

• Tenant shall comply with all applicable local, state, and federal laws, including the Americans with Disabilities Act (ADA), zoning regulations, and building codes. Tenant shall also comply with all applicable environmental regulations.
• Michigan Disclosure: Landlord discloses that [Describe any Michigan-specific disclosures related to utilities, repairs, or other relevant issues].

10. Landlord's Entry

• Landlord shall have the right to enter the Premises for inspection, repairs, showings, or emergencies, provided Landlord gives Tenant at least [Number] hours' prior notice, except in cases of emergency.

11. Insurance and Indemnification

• Tenant shall maintain commercial general liability insurance with minimum coverage of [Dollar Amount] per occurrence and property insurance covering the Premises. Landlord shall be named as an additional insured.
• Tenant shall indemnify and hold harmless Landlord from any and all claims, losses, damages, and liabilities arising out of Tenant's use of the Premises.
• Waiver of Subrogation: To the extent permitted by law, Tenant waives all rights of recovery against Landlord for loss or damage covered by Tenant's insurance policies.

12. Casualty and Condemnation

• If the Premises are damaged by fire or other casualty, Landlord shall repair the Premises as quickly as reasonably possible. Rent shall be abated during the period of repair in proportion to the area of the Premises rendered unusable.
• If the Premises are rendered totally unusable or if the building is condemned, this Lease shall terminate.

13. Default and Remedies

• Events of Default: The following shall constitute events of default by Tenant: (a) failure to pay rent when due; (b) abandonment of the Premises; (c) violation of any other term or condition of this Lease.
• Notice and Cure: Landlord shall give Tenant written notice of any default. Tenant shall have [Number] days to cure a monetary default and [Number] days to cure a non-monetary default.
• Landlord's Remedies: Upon Tenant's default, Landlord shall have the right to re-enter the Premises, terminate this Lease, and recover damages, including unpaid rent, the cost of reletting the Premises, and any other losses suffered by Landlord.
• Mitigation of Damages: Landlord shall take reasonable steps to mitigate its damages in the event of Tenant's default.
• Utilities Shutoff: [Clarify Conditions for Landlord's Utility Shutoff Rights as Governed by Michigan Law.]

14. Dispute Resolution

• Option A: Mediation: Any dispute arising out of or relating to this Lease shall be resolved through mediation in [City, Michigan].
• Option B: Arbitration: Any dispute arising out of or relating to this Lease shall be resolved through binding arbitration in [City, Michigan], in accordance with the rules of the American Arbitration Association.
• Option C: Litigation: Any dispute arising out of or relating to this Lease shall be resolved in the courts of [County] County, Michigan.
• Attorney's Fees: The prevailing party in any dispute arising out of or relating to this Lease shall be entitled to recover its reasonable attorney's fees and costs.

15. Governing Law

• This Lease shall be governed by and construed in accordance with the laws of the State of Michigan.

16. Notices

• All notices shall be in writing and shall be deemed to have been duly given when delivered personally or sent by certified mail, return receipt requested, to the addresses set forth above.

17. Estoppel Certificate

• Tenant shall, within [Number] days of Landlord's request, execute and deliver to Landlord an estoppel certificate confirming the terms of this Lease.

18. Subordination, Non-Disturbance, and Attornment (SNDA)

• This Lease is subordinate to any existing or future mortgages or deeds of trust encumbering the Premises. Landlord shall obtain from any mortgagee a non-disturbance agreement protecting Tenant's rights under this Lease. Tenant agrees to attorn to any successor owner of the Premises.

19. Hazardous Materials

• Tenant shall not use, store, or dispose of any hazardous materials on the Premises without Landlord's prior written consent. Tenant shall comply with all applicable environmental laws and regulations.
• Michigan Environmental Considerations: [Describe any relevant Michigan-specific environmental considerations, such as wetland regulations or groundwater contamination issues, if applicable].

20. Signage

• Tenant shall have the right to install signage in accordance with Landlord's signage policy, attached hereto as Exhibit B.

21. Americans with Disabilities Act (ADA)

• Option A: Landlord shall be responsible for complying with the ADA.
• Option B: Tenant shall be responsible for complying with the ADA.

22. Parking

• Tenant shall have the right to [Number] parking spaces.
• Location of Parking: [Specify location, e.g., in designated parking lot].

23. Force Majeure

• Neither party shall be liable for any failure to perform its obligations under this Lease to the extent such failure is caused by force majeure, including acts of God, war, terrorism, or natural disasters.

24. Holding Over

• If Tenant holds over after the expiration of this Lease, such holding over shall be deemed a month-to-month tenancy at [Percentage]% of the then-current rent.

25. Emergency Contact Information

• Landlord Emergency Contact: [Name, Phone Number]
• Tenant Emergency Contact: [Name, Phone Number]

26. Michigan-Specific Disclosures

• Utility Shutoff: [Disclosure on Michigan Utility Shutoff Rights.]
• Escrow Procedures: [Describe escrow procedures for taxes, insurance, or repairs, if applicable.]
• Michigan Truth in Renting Act: [State whether the Truth in Renting Act applies and provide relevant disclosures, if applicable.]
• Zoning/Licensing: [Disclose any unique local zoning or licensing requirements.]
• Wetlands/Environmental Impact: [Disclosure on wetlands/environmental impact if the property is in a regulated area.]

IN WITNESS WHEREOF, the parties have executed this Lease as of the date first written above.

[Landlord Name]

By: [Landlord Signature]

Name: [Landlord Printed Name]

Title: [Landlord Title]

[Tenant Name]

By: [Tenant Signature]

Name: [Tenant Printed Name]

Title: [Tenant Title]

Witness: [Witness Signature (Optional)]

Exhibits:

• Exhibit A: Floor Plan
• Exhibit B: Signage Policy
• Exhibit C: SNDA Form (if applicable)
• Exhibit D: Renewal/Expansion Option Form (if applicable)
• Exhibit E: Default/Cure Notice Template (if applicable)