A commercial lease agreement is a legally binding contract between a landlord and a tenant that outlines the terms and conditions of renting commercial property. In Michigan, commercial lease agreements are governed by state law and can vary depending on the specific needs of the parties involved.
One important aspect of any commercial lease agreement in Michigan is the duration of the lease. Typically, these agreements are signed for a fixed term of one to five years, with options to renew depending on the needs of the tenant. The lease will also specify the amount of rent that is due, as well as any additional charges such as CAM (Common Area Maintenance) fees or taxes.
Another important consideration in a commercial lease agreement is the permitted use of the property. The lease will outline exactly how the tenant is allowed to use the space, including any restrictions on signage, hours of operation, or the types of activities that can be conducted on the property.
In addition, the lease will often include provisions for repairs and maintenance. As the tenant, you may be responsible for repairs to the interior of the property, while the landlord is responsible for any structural repairs or issues with the building’s HVAC systems.
Finally, it is important to carefully review the section on default and remedies in a commercial lease agreement. This will outline the consequences of breaching the terms of the lease, including potential eviction or legal action.
When signing a commercial lease agreement in Michigan, it is important to work with an experienced attorney who can help ensure that your rights are protected and that the terms of the agreement are fair and reasonable. With a well-drafted lease in place, you can focus on growing your business and maximizing your success in the years to come.