Michigan Commercial Lease Agreement (2025)

As of 2025, Michigan's commercial real estate market is characterized by steady growth, with a particular emphasis on office buildings and retail spaces. The state's vacancy rates have been gradually decreasing, hovering around 8% for office spaces and 6% for retail. Lease terms typically range from three to ten years, with renewal options often built into agreements. Current trends indicate a shift towards flexible lease structures, accommodating hybrid work models and evolving retail formats. With cities like Detroit and Grand Rapids leading the way, Michigan's commercial real estate offers opportunities for both traditional and innovative business models.

• Maintain Safe Premises: Landlords must ensure that their commercial properties meet all safety codes, including fire and building regulations, to provide a safe environment for tenants and their clients.
• Disclosure of Environmental Hazards: According to Michigan law, landlords are required to disclose any known environmental hazards, such as asbestos or lead, present in the building.
• Provide Essential Services: It is mandatory for landlords to supply essential services such as water, electricity, and HVAC systems unless the lease specifies otherwise.
• Adherence to Zoning Laws: Landlords must ensure that the property is used in accordance with local zoning laws, which may affect the type of businesses that can operate within the premises.
• Handling of Security Deposits: Michigan law stipulates that landlords must keep all security deposits in a regulated financial institution and can only deduct for damages beyond normal wear and tear.

• Right to Privacy: Tenants have the right to privacy and landlords must provide prior notice before entering the premises for inspections or repairs.
• Right to a Habitable Property: Tenants can expect the property to be in a condition that meets health and safety standards, with prompt repairs for any critical issues.
• Protection Against Discrimination: State and federal laws protect tenants from discrimination based on race, color, religion, sex, or other protected characteristics.
• Right to Negotiate Lease Terms: Tenants have the right to negotiate lease terms, including rent, lease length, and renewal options, to suit their business needs.
• Right to Withhold Rent: Under certain conditions, tenants may withhold rent if the landlord fails to make necessary repairs that affect the habitability of the property.

Commercial leases in Michigan require adherence to specific regulations, including zoning and building codes which dictate the permissible uses of a property. Businesses must secure necessary permits and licenses relevant to their operations, ensuring compliance with state and local laws. Insurance is another critical component, with tenants often required to obtain liability insurance to protect against potential claims. Understanding these requirements is essential for avoiding legal pitfalls and ensuring smooth commercial operations.

Office buildings, retail spaces, and general commercial properties

State: Michigan

Property Type: Commercial

Document: Commercial Lease