Michigan office lease agreement template

Michigan Office Lease Agreement

This Office Lease Agreement (the "Lease") is made and entered into as of this [Date], by and between [Landlord Full Legal Name], whose address is [Landlord Mailing Address] ("Landlord"), and [Tenant Full Legal Name], a [Tenant Business Entity Type, e.g., Corporation, LLC] with Michigan Business Registration Number [Tenant Michigan Business Registration Number (if applicable)], whose address is [Tenant Mailing Address] ("Tenant").

1. Premises

The Landlord leases to the Tenant, and the Tenant leases from the Landlord, the office space located at [Property Address], Suite/Unit [Suite/Unit Number], Floor [Floor Level] (the "Premises"), consisting of approximately [Total Rentable Square Footage] rentable square feet and [Total Usable Square Footage] usable square feet, with the following legal description: [Official Legal Description]. The Premises include the following: [Scope of Office Space - e.g., Individual offices, cubicles, conference rooms, reception area, storage area, rights to signage as follows: location, size, illumination, etc.].

2. Common Areas and Amenities

Tenant shall have the right to use the following common areas in the Building, subject to Landlord's reasonable rules and regulations: [List Common Areas: Lobbies, restrooms, hallways, elevators, parking assignments specifying number and location, bike storage if any, mail/package facilities, etc.].

Tenant shall have the right to use the following building amenities, subject to Landlord's reasonable rules and regulations: [List Amenities: Meeting rooms, fitness centers, shared kitchens, security desk access, card/fob systems, after-hours entry protocols, snow removal services, etc.].

3. Use of Premises

Option A: The Premises shall be used solely for general office purposes and for no other use.

Option B: The Premises shall be used solely for [Specific Office Use] and for no other use.

The Tenant shall comply with all applicable federal, state, and local laws, ordinances, and regulations, including those of East Lansing, Detroit, Grand Rapids, or any other relevant local ordinances, including zoning, licensing, and local municipal business use limitations applicable to Michigan. The Tenant shall not use the Premises for any retail, industrial, residential, or medical purposes except as expressly allowed herein.

4. Subleasing and Assignment

Option A: Tenant shall not sublease the Premises or assign this Lease without the prior written consent of the Landlord, which consent may be withheld in Landlord's sole discretion.

Option B: Tenant shall not sublease the Premises or assign this Lease without the prior written consent of the Landlord, which consent shall not be unreasonably withheld. The process for seeking such approval is: [Describe Approval Process].

5. Building Rules and Regulations

Tenant shall comply with all reasonable rules and regulations promulgated by Landlord for the Building, Property Management policies, and any applicable office park or owners' association covenants recorded with the county, as well as published office building policies, which are attached hereto as Exhibit [Exhibit Number] or referenced at [Location of Referenced Policies].

6. Lease Term

The term of this Lease shall commence on [Lease Commencement Date] and shall expire on [Lease Expiration Date] (the "Term").

Option A: Tenant shall have no option to renew this Lease.

Option B: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Length of Renewal Term] each, provided that Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the expiration of the initial Term or any renewal term. The rent for each renewal term shall be adjusted to the then-current market rate for comparable office space in the [City, MI] area.

Early Termination: [Specify any early termination provisions, including notice periods, penalties, and Landlord's duty to mitigate damages as per MCL 554.205(2)].

7. Rent

The monthly base rent for the Premises shall be [Monthly Base Rent Amount] U.S. Dollars, payable in advance on the [Day] day of each month, commencing on [Date].

Option A: The rent shall remain fixed throughout the Term.

Option B: The rent shall be increased annually by [Percentage]%.

Option C: The rent shall be adjusted annually based on the Consumer Price Index (CPI) for [Specific CPI Index].

Option D: The rent shall be adjusted to the then-current market rate for comparable office space in the [City, MI] area, as determined by [Method of Market Rate Determination].

Payment shall be made to Landlord at [Bank Name], Account Number [Account Number], Routing Number [Routing Number], or via electronic transfer to [Electronic Transfer Instructions]. Accepted payment methods are: [Accepted Payment Methods, e.g., Check, Wire Transfer, ACH].

Late Fee: If rent is not received within [Number] days of the due date, a late fee of [Late Fee Amount or Percentage] will be assessed, consistent with Michigan usury and penalty laws.

Property Taxes: [State whether property taxes are included in the rent or are to be reimbursed separately. If separate, specify the terms of reimbursement.].

8. Additional Rent

In addition to the base rent, Tenant shall pay the following as additional rent:

• Common Area Maintenance (CAM) fees: [Specify CAM fee details, including calculation and payment schedule].
• Utilities: Tenant shall be responsible for paying directly for [List Utilities: electrical, water, heating/cooling, trash] based on [Landlord or Tenant's responsibility for direct metering].
• Snow and Ice Removal: [Specify snow and ice removal responsibilities and costs].
• Parking Fees: [Specify parking fees, if any].
• Janitorial and Cleaning Services: [Specify janitorial and cleaning services responsibilities and costs].
• Property Management Charges: [Specify property management charges].
• Capital Improvements Amortization: [Specify terms for amortizing capital improvements, if any].

Landlord shall have the right to audit pass-through operating expenses upon [Number] days written notice.

9. Tenant Improvements

Tenant improvements (build-out) shall be [Describe Tenant Improvement Agreement, including Landlord's approval requirements, compliance with Michigan building codes, ADA accessibility standards, and city permit processes. Reference a separate Tenant Improvement Agreement if applicable.].

10. Obligations at Lease End

Upon the expiration or termination of this Lease, Tenant shall remove all of its personal property from the Premises and restore the Premises to its original condition, reasonable wear and tear excepted, unless otherwise agreed in writing by Landlord. Sustainability and recycling requirements are as follows: [Detail any required recycling programs or sustainability measures].

11. Maintenance and Repairs

Landlord shall be responsible for maintaining and repairing the structural components of the Building, including the roof and exterior walls.

Tenant shall be responsible for maintaining and repairing the non-structural components of the Premises, including the interior walls, lighting, and HVAC servicing. Procedures for reporting needed repairs are: [Describe Reporting Procedures].

Michigan-specific right for tenant to self-rectify at landlord’s expense under certain conditions: [Specify such conditions, if any].

12. Insurance

Tenant shall maintain business personal property insurance, liability insurance naming Landlord as additional insured in the amount of [Insurance Amount].

Landlord shall maintain property insurance on the Building.

Waivers of subrogation shall be included in both Landlord's and Tenant's insurance policies as interpreted under Michigan law.

13. Fire Safety

Tenant shall comply with the Michigan Fire Prevention Code.

The Building is equipped with the following life-safety systems: [List Life-Safety Systems]. Ongoing testing will occur [Testing Schedule].

Emergency exit signage and evacuation plans are posted [Location].

Tenant shall immediately report any accidents, utility outages, or emergencies to [Contact Information].

14. Move-In and Move-Out

A move-in checklist and inspection report documenting the condition of the Premises have been completed and signed by both parties. A similar move-out checklist and inspection report will be completed upon termination of the Lease. Tenant is responsible for removing all trade fixtures and restoring the Premises to its original condition (except tenant improvements agreed to remain).

Provisions for disposal or storage of abandoned property shall be in accordance with MCL 600.2918.

15. Security Deposit

Tenant shall deposit with Landlord a security deposit in the amount of [Security Deposit Amount] U.S. Dollars. Upon termination of this Lease, the security deposit, less any deductions for damages or unpaid rent, shall be returned to Tenant within the time period required by Michigan law, including statutory interest and return deadline requirements (per MCL 554.604, etc.). Standards for deductions are: [Detailed list of potential deductions].

16. Default and Remedies

Events of Default: [Define events of default by Tenant].

Upon the occurrence of an Event of Default, Landlord shall provide Tenant with written notice of the default and a reasonable opportunity to cure, consistent with Michigan’s statutory notice and cure periods.

Landlord's remedies for default include: reentry, re-letting, acceleration of rent, and damage calculation following Michigan lease damages law.

17. Indemnification

Tenant shall indemnify and hold Landlord harmless from and against any and all claims, losses, damages, liabilities, and expenses arising out of Tenant's use of the Premises or any activity conducted by Tenant on the Premises, subject to limitations on waivers per state policy and under Michigan negligence frameworks.

Landlord shall indemnify and hold Tenant harmless from and against any and all claims, losses, damages, liabilities, and expenses arising out of Landlord's negligence or willful misconduct.

18. Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved through direct negotiation. If the dispute cannot be resolved through negotiation, the parties agree to attempt non-binding mediation. If mediation is unsuccessful, the parties may pursue binding commercial arbitration or litigation in the [County Name] County Circuit Court. This Lease shall be governed by and construed in accordance with the laws of the State of Michigan.

19. Disclosures

Required Disclosures: [Include mandatory disclosures required under Michigan law, e.g., environmental disclosures, lead-based paint for pre-1978 buildings, right to place lease record at county register of deeds per MCL 565.35.].

20. Compliance

Tenant shall comply with all applicable state licensing, tax registration, Michigan Corporate Income Tax (CIT) implications, State Use Tax treatment if any tenant improvements are provided, responsibility for reporting local personal property taxes or special assessments, and allocation of parking/commuter tax obligations in applicable jurisdictions.

21. Force Majeure

Neither party shall be liable for any failure to perform its obligations under this Lease if such failure is caused by force majeure, including Michigan-specific severe weather (snow, flooding), public health orders, or emergency acts.

22. Miscellaneous

This Lease shall be governed by and construed in accordance with the laws of the State of Michigan (including compliance with MCL Article 2A for leases over 1 year). If any provision of this Lease is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

This Lease constitutes the entire agreement between the parties and supersedes all prior or contemporaneous communications and proposals, whether oral or written. This Lease may be amended only by a written instrument signed by both parties.

Digital signatures and electronic delivery of this Lease shall be permitted and comply with Michigan ESIGN law.

23. Regulatory Requirements

Tenant shall comply with all applicable regulatory requirements for health/safety disclosures, accessibility, sign ordinances, tobacco/cannabis restrictions, and any local business license mandates affecting office operation use.

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

Landlord:

[Landlord Full Legal Name]

By: [Landlord Signature]

Name: [Landlord Printed Name]

Title: [Landlord Title]

Tenant:

[Tenant Full Legal Name]

By: [Tenant Signature]

Name: [Tenant Printed Name]

Title: [Tenant Title]