Michigan warehouse lease agreement template

Michigan Warehouse Lease Agreement

This Michigan Warehouse Lease Agreement (the "Agreement") is made and entered into as of [Date], by and between [Landlord's Full Legal Name], residing at [Landlord's Full Address] (the "Landlord"), and [Tenant's Full Legal Name], a [State] [Entity Type, e.g., Corporation, LLC], with its principal place of business at [Tenant's Full Address] (the "Tenant"). If applicable, Landlord's registered agent is [Landlord's Registered Agent Name], residing at [Landlord's Registered Agent Address]. If applicable, Tenant's registered agent is [Tenant's Registered Agent Name], residing at [Tenant's Registered Agent Address].

1. Property and Premises

Landlord leases to Tenant, and Tenant leases from Landlord, the warehouse premises (the "Premises") located at [Street Address], [City], Michigan, [Zip Code], with Tax Parcel Number [Tax Parcel Number]. The Premises are further described as:

• Total Square Footage: [Square Footage]
• Ceiling Height: [Ceiling Height]
• Loading Docks: [Number]
• Truck Bays: [Number] [Type, e.g., Interior, Exterior]
• Racking Systems: [Included/Not Included] If Included, describe: [Description]
• Dedicated Outdoor Storage Area: [Yes/No]. If yes, describe: [Description and Dimensions]
• Dedicated Indoor Storage Area: [Yes/No]. If yes, describe: [Description and Dimensions]
• Office Area within Warehouse: [Yes/No]. If yes, describe: [Description and Dimensions]
• Exclusive-Use Loading/Unloading Zone: [Yes/No]. If yes, describe: [Description and Dimensions]
• Shared Loading/Unloading Zone: [Yes/No]. If yes, describe: [Description and Dimensions]
• Parking Spots for Commercial Vehicles/Trailers: [Number]
• Mezzanine: [Yes/No]
• Temperature-Controlled Area: [Yes/No] If yes, describe: [Description and Dimensions]
• Other Specialty Areas: [Description]

2. Use of Premises

The Premises shall be used solely for the following purpose:

• Option A: Warehouse/Distribution/Storage
• Option B: Light Manufacturing (consistent with Michigan zoning ordinances and local use permits)

Prohibited Uses:

• Hazardous Waste Storage
• Residential Occupancy
• Manufacturing not compliant with local zoning.
• Other prohibited uses: [List Prohibited Uses]

Any change of use, subletting, or assignment requires written Landlord consent. Tenant shall obtain all necessary operational licenses from state and local authorities. Tenant is responsible for compliance with all applicable local zoning codes. Specific zoning code reference: [Zoning Code Reference].

3. Lease Term

The term of this Lease shall commence on [Start Date] and expire on [End Date].

• Option A: Renewal Option. Tenant shall have the option to renew this Lease for [Number] additional term(s) of [Duration] each, provided Tenant gives Landlord written notice of its intention to renew at least [Number] days prior to the expiration of the then-current term.
• Option B: Automatic Extension. This Lease shall automatically extend for successive terms of [Duration] unless either party gives written notice of termination at least [Number] days prior to the expiration of the then-current term.
• Option C: Early Termination. Tenant shall have the right to terminate this lease early by providing [Number] days written notice to Landlord and paying a termination penalty of [Amount or Formula].

Holdover: If Tenant remains in possession of the Premises after the expiration or termination of this Lease, such holding over shall be deemed a month-to-month tenancy, subject to all the terms and conditions of this Lease, except that the rent shall be [Amount] per month.

4. Rent and Security Deposit

The base rent shall be [Amount] per [Square Foot/Month or Flat Rate/Month], payable monthly in advance on the [Day] day of each month, commencing on [Date].

• Option A: Per Square Foot: The unit calculation is based on [Square Footage] square feet at a rate of [Amount] per square foot per month.
• Option B: Flat Rate: The monthly rental is a flat rate of [Amount].

Security Deposit: Tenant shall deposit with Landlord a security deposit in the amount of [Amount]. The security deposit shall be held in escrow as required by Michigan law. Landlord shall handle the security deposit as required by Michigan law, including statutory interest and refund timeframe.

Rent Escalation:

• Option A: CPI: The rent shall be adjusted annually based on the Consumer Price Index (CPI) for [Specific CPI].
• Option B: Fixed: The rent shall increase by [Percentage]% annually.

Payment Terms: Rent shall be paid by [Method of Payment, e.g., check, electronic transfer] to [Payment Address/Account Information]. Late Payment Fees: A late fee of [Amount or Percentage] will be charged for any rent payment received more than [Number] days after the due date. Returned Check Charge: A charge of [Amount] will be assessed for any returned check.

Property Taxes:

• Option A: Triple Net Lease: Tenant shall pay its proportionate share of real estate taxes, personal property taxes, and assessments. Tenant’s proportionate share is [Percentage]%.
• Option B: Gross Lease: Landlord shall be responsible for paying real estate taxes.

5. Utilities and Operating Expenses

Tenant shall be responsible for the following utilities and operating expenses:

• Electricity: [Tenant/Landlord Responsibility]. Metered/Pro Rata: [Metered/Pro Rata]. If Pro Rata, state allocation method: [Allocation Method].
• Gas: [Tenant/Landlord Responsibility]. Metered/Pro Rata: [Metered/Pro Rata]. If Pro Rata, state allocation method: [Allocation Method].
• Water: [Tenant/Landlord Responsibility]. Metered/Pro Rata: [Metered/Pro Rata]. If Pro Rata, state allocation method: [Allocation Method].
• Sewer: [Tenant/Landlord Responsibility]. Metered/Pro Rata: [Metered/Pro Rata]. If Pro Rata, state allocation method: [Allocation Method].
• Trash Removal: [Tenant/Landlord Responsibility]
• Snow Plowing: [Tenant/Landlord Responsibility]
• Landscaping: [Tenant/Landlord Responsibility]
• Pest Control: [Tenant/Landlord Responsibility]
• Internet: [Tenant/Landlord Responsibility]
• Fire/Alarm Monitoring: [Tenant/Landlord Responsibility]

Who contracts/coordinates for each service: [Details for each utility].

6. Repairs and Maintenance

Landlord shall be responsible for:

• Structural Repairs: [Description of Landlord's Responsibilities]
• Maintenance of Warehouse Systems (roof, HVAC, loading doors, sprinklers, dock equipment): [Description of Landlord's Responsibilities]

Tenant shall be responsible for:

• Ordinary Repairs: [Description of Tenant's Responsibilities]
• Snow and Ice Removal: [Specific Protocols]

Tenant Improvements and Alterations: Any tenant improvements or alterations require Landlord approval. All improvements must comply with Michigan building, environmental, and fire codes, ADA accessibility requirements, and environmental impact assessments. Tenant is responsible for obtaining all necessary permits. Restoration Requirements at Lease End: [Description of Restoration Requirements].

Landlord-Delivered Capital Repairs/Improvements: [Description of Capital Repairs].

7. Insurance

Tenant shall maintain commercial property and general liability insurance with Michigan minimum coverage limits of [Amount]. Landlord shall maintain insurance on the building. Named Insureds: [List]. Required Waivers of Subrogation: [Description]. Certificate Provision Procedures: [Description]. Endorsement for Warehouse-Specific Operations/Hazardous Materials: [Description].

Fire and Casualty Policies: [Evacuation Procedures], [Business Interruption Procedures], [Disaster Restoration Procedures], [Procedures for Constructive Destruction or Condemnation].

8. Environmental and Hazardous Substances

Disclosure of past or present hazardous material uses: [Description]. Required Phase I or II Environmental Site Assessment: [Description]. Tenant reporting/containment/remediation duties: [Description]. Compliance with Michigan’s Part 201 Environmental Remediation law: [Description]. Spill Prevention and Reporting: [Description]. Indemnification for violations: [Description].

9. Operational Matters

Truck Access, Vehicle Traffic, Material Handling Equipment, Dock Scheduling, Operational Hours, Security and Surveillance System Installation/Maintenance: [Detailed Rules and Procedures]. Limitation of Liability for Warehoused Goods: [Description of Liability Limitations].

10. Alterations and Trade Fixtures

Rules for Alterations to Space: [Description]. Installation of Tenant’s Racking/Shelving/Conveyance Systems: [Requirements]. Obligation to Restore to Original State: [Description]. Conditions for Removal of Trade Fixtures: [Description]. Requirements for Disposal of Materials at the End of Tenancy: [Description].

11. Signage and Exterior Lighting

Rules for Signage: [Description]. Exterior Lighting: [Description]. Fencing or Perimeter Access: [Description]. Restrictions on Outdoor Storage: [Description].

12. Building and Warehouse Rules

Building and Warehouse Rules, Emergency Access, Evacuation Protocols, and Cooperation with local fire marshal, code inspector, and public authorities as required by Michigan law: [Detailed List of Rules and Procedures].

13. Dispute Resolution

Venue: Courts in the county where the warehouse is located, per Michigan law. Preference for Negotiation or Mediation before litigation: [Description]. Application of Michigan contract and property law in interpretation.

14. Possession and Surrender

Conditions for initial possession: [Description]. Move-In Inspection Report (with photographic evidence of pre-existing conditions): [Procedure]. Move-Out Inspection: [Procedure]. Damage Reparations: [Procedure]. Process for Returning or Applying the Security Deposit under Michigan Commercial Tenancy law: [Procedure]. Handling of abandoned property or goods left behind: [Procedure].

15. Indemnification

Tenant Indemnification: [Description]. Landlord Indemnification: [Description].

16. Default and Remedy

Default and Remedy Procedures: [Description]. Landlord Liens or Warehouseman’s Liens (if applicable): [Description].

17. Quiet Enjoyment and Right of Entry

Rights of Quiet Enjoyment subject to compliance: [Description]. Right of Entry for Inspection or Repairs (with required Michigan statutory notice period): [Description].

18. Landlord Representations and Warranties

Property is compliant with building and fire safety codes, clear title, not encumbered by undisclosed liens: [Detailed Description]. Non-Disturbance and Subordination/Attornment Clauses for lender security interests affecting the warehouse: [Description].

19. Permits and Compliance

Reference any required local permits, municipal/State inspections, and compliance certificates (certificate of occupancy, fire department approval, environmental clearance): [List]. Tax and assessment allocation and process for appeals: [Description].

20. Special Provisions

Special provisions for regulated goods (food, pharmaceuticals, chemicals, automotive, etc.), Michigan law-required disclosures (such as environmental or flood zone status), and handling of contingent business interruptions unique to warehouse use (supply chain disruptions, utility outages): [Detailed Provisions].

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

____________________________
[Landlord's Full Legal Name]

____________________________
[Tenant's Full Legal Name]