Commercial Lease Cost in Michigan
Updated July 2026 · Michigan commercial real estate rates
Calculate Commercial Lease Cost in Michigan
Commercial Lease Rates in Michigan
| Space Type | /sqft/yr | 1,000 sqft/mo | National |
|---|---|---|---|
| Office A | $61.20 | $5,100 | $60/sqft |
| Office B | $28.56 | $2,380 | $28/sqft |
| Retail Prime | $35.70 | $2,975 | $35/sqft |
| Retail Secondary | $18.36 | $1,530 | $18/sqft |
| Warehouse | $12.24 | $1,020 | $12/sqft |
| Industrial | $10.20 | $850 | $10/sqft |
Commercial Real Estate in Michigan
Detroit's commercial real estate market is recovering steadily. Downtown Detroit Class A office now runs $28–$42/sqft/yr with meaningful tenant improvement allowances. Suburban Detroit (Troy, Southfield, Dearborn) offers $18–$28/sqft/yr. Michigan industrial space is in high demand from EV and mobility manufacturers — warehouse near auto corridors runs $8–$12/sqft/yr.
Key Lease Terms to Understand
- • NNN: Tenant pays base rent + property taxes + insurance + maintenance
- • CAM charges: Common area maintenance; add $3–$8/sqft/yr typically
- • Rent escalations: Typically 2–4% annually built into lease
- • TI allowance: Tenant improvement allowance from landlord for build-out
- • Personal guarantee: Landlords often require for small businesses
Negotiation Tips
- • Get a tenant's broker — they're paid by the landlord, not you
- • Negotiate free rent periods (1–3 months is common in soft markets)
- • Push for higher TI allowance vs. lower rent
- • Include a subletting clause for flexibility
True Total Occupancy Cost in Michigan — NNN Lease
NNN leases list only base rent — but total occupancy cost includes CAM charges, utilities, and insurance. Here's the real annual cost for 1,000 sqft in Michigan.
| Space Type | Base Rent/yr | +CAM/yr | Total/yr |
|---|---|---|---|
| Office A | $61,200 | +$5,100 | $66,300 |
| Office B | $28,560 | +$5,100 | $33,660 |
| Retail Prime | $35,700 | +$4,080 | $39,780 |
| Retail Secondary | $18,360 | +$4,080 | $22,440 |
| Warehouse | $12,240 | +$1,530 | $13,770 |
| Industrial | $10,200 | +$1,530 | $11,730 |
Based on 1,000 sqft. CAM includes property tax, insurance, and maintenance pass-throughs. 3-year total assumes 3.5% annual escalation. Add utilities ($1.50–$3.50/sqft/yr) for full occupancy cost.
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