Michigan retail lease agreement template

Michigan Retail Lease Agreement

This Retail Lease Agreement ("Agreement") is made and entered into as of [Date], by and between [Landlord Name], a [Business Entity Type, e.g., Limited Liability Company] organized and existing under the laws of the State of Michigan, with its principal place of business at [Landlord Address] ("Landlord"), and [Tenant Name], a [Business Entity Type, e.g., Corporation] organized and existing under the laws of the State of Michigan, with its principal place of business at [Tenant Address] ("Tenant").

1. Premises

• Option A: Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, that certain retail space (the "Premises") located at [Street Address], [City], Michigan, bearing Parcel Number [Parcel Number], and consisting of approximately [Square Footage] square feet, being Unit/Suite number [Unit/Suite Number] (the "Premises").
• Option B: The Premises also includes [Description of Frontage/Window Display Space], a ceiling height of [Ceiling Height], restroom access via [Description of Restroom Access], and a backroom/storage area of approximately [Storage Area Square Footage] square feet.

2. Adjacent and Co-tenanted Spaces

• The Premises is located adjacent to [Description of Adjacent Space] and is a part of a larger retail center also occupied by [Description of Co-tenanted Spaces].

3. Permitted Use

• Option A: The Premises shall be used and occupied solely for the operation of a retail business selling [Description of Product Lines] and related goods and services.
• Option B: Tenant shall comply with all applicable Michigan zoning ordinances, health codes, ADA accessibility requirements, local signage regulations, and municipal business licensing requirements.
  • Tenant's permitted hours of operation are [Hours of Operation]. After-hour sales are [Allowed/Prohibited] under the following conditions: [Conditions for After-Hour Sales].

4. Prohibited Use & Alterations

• Tenant shall not sublet or assign this Lease without the prior written consent of Landlord, which consent shall not be unreasonably withheld.
• Tenant shall not make any alterations, additions, or improvements to the Premises without the prior written consent of Landlord. Changes to the use of the Premises require Landlord’s approval.

5. Lease Term

• Option A: The term of this Lease shall commence on [Start Date] and expire on [End Date] (the "Term").
• Option B: Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Renewal Term Length] each, provided Tenant gives Landlord written notice of its intent to renew at least [Number] days prior to the expiration of the then-current Term. Early termination is subject to the process requirements under Michigan law and requires [Number] days’ notice and payment of [Early Termination Fee].

6. Rent

• Option A: Tenant shall pay Landlord base rent in the amount of [Base Rent Amount] per month, payable in advance on the [Day] day of each month.
• Option B: In addition to base rent, Tenant shall pay percentage rent equal to [Percentage]% of Tenant’s gross sales exceeding [Sales Threshold] during each [Time Period]. Tenant shall report gross sales to Landlord on a [Frequency, e.g., monthly] basis, accompanied by supporting documentation. Landlord has the right to audit Tenant's sales records upon [Number] days' notice, compliant with Michigan law. Rent shall escalate by [Percentage]% every [Number] years or based on the Consumer Price Index (CPI) with [Frequency] adjustments.

7. Security Deposit

Tenant shall deposit with Landlord a security deposit in the amount of [Security Deposit Amount], which shall be held and disbursed in accordance with the Michigan Security Deposit Act. Advance rent of [Amount] is also required, applied to the [Month] rent payment.

8. Payment

Rent and all other charges shall be payable by [Payment Method, e.g., check, electronic transfer] to Landlord at [Payment Address]. Late payment shall incur a penalty of [Late Payment Penalty], not to exceed amounts permissible under Michigan law. Returned payment fee is [Returned Payment Fee].

9. Taxes

• Option A: Tenant shall be responsible for paying all personal property taxes and business use taxes levied on Tenant's equipment and inventory.
• Option B: Landlord shall be responsible for paying all real property taxes and special assessments, except for any increase in taxes directly attributable to Tenant's improvements or operations.

10. Maintenance and Repair

• Option A: Landlord shall maintain the roof, foundation, exterior walls, and common areas of the building. Tenant shall maintain the interior of the Premises in good repair and condition.
• Option B: Tenant is responsible for HVAC maintenance and repair. Landlord is responsible for capital improvements. All maintenance and repair must be consistent with Michigan building safety codes.

11. Utilities

Tenant shall be responsible for the cost of [List of Utilities, e.g., electricity, gas, water]. Landlord shall be responsible for [List of Utilities, e.g., sewer, trash removal]. Janitorial services are the responsibility of [Tenant/Landlord].

12. Common Area Maintenance (CAM)

Tenant shall pay its pro rata share of Common Area Maintenance (CAM) charges, which shall be calculated as [Calculation Method, e.g., Tenant’s square footage divided by total square footage]. Landlord shall provide Tenant with an itemized statement of CAM charges [Frequency, e.g., annually]. Tenant has the right to audit CAM charges upon [Number] days' notice.

13. Tenant Improvements

All Tenant improvements shall be subject to Landlord's prior written approval and shall be performed in accordance with all applicable building codes and regulations, including obtaining all necessary permits. Upon termination of this Lease, Tenant shall [Restore the Premises/Leave Improvements].

14. Signage

Tenant shall have the right to install signage in accordance with Landlord's signage criteria and all applicable local ordinances. Size, location, and illumination must comply with Michigan and local city ordinances.

15. Insurance

Tenant shall maintain commercial general liability insurance with limits of at least [Liability Insurance Amount] per occurrence and property insurance covering Tenant's personal property and improvements. Landlord shall be named as an additional insured on Tenant's liability policy. Landlord maintains its own insurance. Waiver of subrogation applies. Insurance requirements consistent with Michigan insurance statutes.

16. Environmental Compliance

Tenant shall comply with all applicable Michigan Environmental Laws. Tenant shall not use, store, or dispose of any hazardous materials on the Premises without Landlord's prior written consent. Tenant shall indemnify Landlord from any environmental liabilities arising from Tenant's operations.

17. Fire Protection and Safety

Tenant shall comply with all applicable fire codes and safety regulations. Tenant is responsible for business continuity in the event of a disaster. Compliance with Michigan Fire Code and city fire marshal requirements is required.

18. Labor and Operations

Tenant shall comply with all local labor ordinances. Tenant shall be responsible for crowd management and loading dock usage.

19. Equipment Installation

Tenant shall be responsible for the installation and maintenance of its own equipment, including POS systems, freezers, and racks. Landlord shall cooperate with Tenant in connection with such installation.

20. Parking

Tenant and its customers shall have the right to use the parking facilities in common with other tenants and their customers.

21. Restrictions

Tenant shall not operate any business that is directly competitive with [Description of Competitive Businesses] within [Radius Distance] miles of the Premises.

22. Move-In and Move-Out

Tenant shall coordinate its move-in and move-out with Landlord. Tenant is responsible for cleaning and repairing any damage to the Premises upon move-out.

23. Taxes Specific to Michigan

Tenant is responsible for Michigan State Use Tax on equipment or fixtures and sales tax obligations.

24. Dispute Resolution

Any dispute arising out of or relating to this Lease shall be resolved through negotiation and mediation. If mediation is unsuccessful, the dispute shall be resolved by [Arbitration/Litigation] in Michigan state courts, and Michigan law governs contract interpretation.

25. Compliance

This Agreement is subject to the Michigan Statute of Frauds. Landlord has the authority to lease the premises.

26. Notices

All notices shall be in writing and delivered by [Delivery Method, e.g., certified mail, email] to the addresses set forth above. Allowed electronic notice with [Number] days' notice period. Michigan statutory minimum notice periods apply.

27. Licenses and Permits

Tenant shall obtain and maintain all necessary city and state business licenses, resale certificates, and post required legal notices.

28. Lender Access

This Lease is subordinate to any existing or future mortgage or deed of trust encumbering the Premises. Lender access rights apply under Michigan foreclosure and mortgage laws.

29. Remedies

In the event of a breach of this Lease, the non-breaching party shall have all remedies available at law or in equity, including monetary damages and injunctive relief. Cure periods compliant with Michigan statutes apply.

30. Indemnification

Tenant shall indemnify and hold Landlord harmless from any and all claims, losses, or damages arising out of Tenant's use of the Premises.

31. Special Provisions

[Specific clauses to address unique aspects of the lease, e.g., signage for grand opening, compliance with rules for community events, deliveries limitations, placement of external vending machines]

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

Landlord:

[Landlord Name]

By: [Landlord Signature]

Name: [Landlord Printed Name]

Title: [Landlord Title]

Contact Email: [Landlord Email]

Contact Phone: [Landlord Phone]

Tenant:

[Tenant Name]

By: [Tenant Signature]

Name: [Tenant Printed Name]

Title: [Tenant Title]

Contact Email: [Tenant Email]

Contact Phone: [Tenant Phone]