Before You Lease a Commercial Space in Michigan: A Contractor’s Checklist

The location looks promising. The rent fits your budget. You can already picture your sign above the entrance.

Before you sign, there is another question worth answering: What will it take to make this space work for your business?

An empty storefront may need more than paint and flooring. A salon might require new plumbing. A gym may need changes to ventilation and its layout. An office conversion could involve electrical work, restroom improvements, or changes to entrances and exits.

Before leasing commercial space in Michigan, review the property with your contractor, confirm your intended use with the appropriate local departments, and understand who will pay for improvements. A little investigation now can help you compare properties realistically and avoid committing to a space that does not fit your budget or schedule.

At KD Building Company, we provide commercial construction, renovations, and design-build services. Here is the checklist we recommend using when evaluating your next business location.

1. Confirm that the property can accommodate your business

A space being advertised as “commercial” does not tell you whether your particular operation will be approved there.

Before signing, describe your proposed business to the local planning or zoning department. Include how the space will operate, expected customer activity, equipment, and any proposed exterior changes. Ask whether your use is allowed at that address and what additional review may be necessary.

Then speak with the building department about the existing approved use and your proposed occupancy. Michigan LARA explains that a permit is required when a structure’s use or occupancy changes. Confirm how that applies to your project with the appropriate enforcing agency. Michigan building permit information

Ask before you commit: Can this specific business operate here, and what approvals or building changes would be needed?

2. Walk through the space with a commercial contractor

Bring a contractor into the process while you are still evaluating the property. A walkthrough can help identify visible conditions that deserve closer investigation and improvements that may affect your budget.

Look together at the floors, walls, ceilings, entrances, restrooms, and accessible building systems. Ask about signs of water intrusion, previous alterations, and areas that cannot be inspected without further access.

Request available floor plans, maintenance records, and information about previous renovations from the landlord. A walkthrough is a starting point; some questions will require an architect, engineer, specialist, or additional investigation.

Ask before you commit: What do we know about the building, and what remains unverified?

3. Check electrical capacity against your equipment needs

Existing outlets do not establish whether the building can support your operation.

Give your contractor a list of planned equipment, including manufacturer specifications when available. Equipment used in salons, food service, workshops, and other businesses can have requirements that differ substantially from those of the previous tenant.

Have the electrical system evaluated for the proposed load, panel capacity, circuit needs, and any required service changes. If an upgrade is necessary, clarify landlord approval, utility coordination, cost responsibility, and potential scheduling implications.

Ask before you commit: Can the existing electrical service support our equipment, or should the budget include an upgrade?

4. Evaluate heating, cooling, ventilation, and plumbing

A heating or cooling system that switches on during a showing may still be unsuitable for your proposed layout or occupancy. Ask for equipment age and service records, and have the system evaluated for the intended use.

Review plumbing with the same attention. Existing restrooms and a small sink may not meet the needs of a salon, restaurant, or fitness facility. The location of water and drain connections can also influence the layout and cost of construction.

Discuss additional sinks, hot water demand, restroom changes, ventilation, and any specialized equipment before deciding that a space is nearly ready to open.

Ask before you commit: Which existing systems can remain, and which need modification or replacement?

5. Test the layout before falling in love with the square footage

Two spaces with the same advertised area can function very differently.

Sketch a preliminary layout that includes customer areas, equipment, storage, staff space, restrooms, and delivery access. Consider how customers and employees will move through it during a busy day.

Columns, ceiling heights, existing plumbing locations, and structural walls may limit your options. Have proposed wall removals evaluated before assuming they are straightforward.

For example, a salon layout should account for the relationship between styling stations and wash areas. A gym needs room for equipment, circulation, and supporting facilities. Retail space needs to accommodate merchandise, checkout, storage, and receiving.

Ask before you commit: Does the usable layout support the way our business actually operates?

6. Review accessibility and life safety early

Entrances, routes through the space, restrooms, exits, and fire protection should be part of the initial review. These items can influence both the layout and renovation scope.

Businesses open to the public have obligations under the Americans with Disabilities Act.

Existing buildings are not automatically exempt, and alteration work can carry accessibility requirements. Have qualified professionals evaluate the conditions and planned work. ADA guidance for businesses

Ask the building department and, where applicable, the fire authority what they need to review for your proposed use. Do not assume a previous tenant’s approval covers your new business or renovation.

Ask before you commit: What accessibility and life-safety work must be included in the plan?

7. Put landlord and tenant responsibilities in writing

A conversation about “helping with the build-out” leaves too much room for misunderstanding.

Before signing, have your commercial real estate attorney review the lease and clarify how construction responsibilities are allocated. Discuss who pays for existing building deficiencies, system repairs, and improvements required for your business.

If the landlord offers a tenant improvement allowance, confirm the amount, eligible expenses, approval process, and payment timing. An allowance does not necessarily mean funds will be available before you need to pay contractors.

Also clarify access for design and construction, landlord review of plans, permitted work hours, rent commencement, and any obligations to remove alterations when the lease ends. Ask your attorney about appropriate protections if necessary approvals cannot be obtained.

Ask before you commit: Are the work, payment responsibilities, and conditions for proceeding clearly documented?

8. Build a complete budget for getting the space ready

Monthly rent is only one part of the decision. Compare potential locations using the likely total cost of preparing each one for your business.

Your preliminary project budget should account for:

• Design, engineering, and required reviews.

• Demolition and disposal.

• Electrical, plumbing, and HVAC work.

• Restroom, accessibility, and fire-protection improvements.

• Flooring, walls, ceilings, lighting, and finishes.

• Equipment installation, signage, and data connections.

• Permit fees and a contingency for unresolved conditions.

Keep rent and other expenses incurred before opening visible in your broader business budget as well.

Ask your contractor to identify assumptions, exclusions, and items that require further investigation. A preliminary estimate helps you make a decision, but it is not a fixed construction price based on completed plans.

Ask before you commit: Can we afford the full project, including the items we have not finalized yet?

9. Work backward from a realistic opening date

The day you receive the keys is not necessarily the day construction can start.

Build a preliminary schedule that allows for design decisions, landlord approvals, permit review, material procurement, construction, inspections, and any required occupancy authorization. Ask the appropriate departments about their current process rather than relying on a timeline from another city or a previous project.

Equipment delivery and utility work can also affect the sequence. Discuss which milestones must be reached before you commit to staff start dates or advertise a grand opening.

KD’s commercial design-build guide explains how planning, design, approvals, and construction fit together.

Ask before you commit: What must happen before opening, and which unresolved items could move that date?

10. Check parking, deliveries, signage, and construction access

Spend time outside the unit as well as inside it.

Visit during the hours your business expects to be busiest. Review customer parking, accessible routes, delivery arrangements, waste storage, and any shared access with neighboring tenants.

Ask the landlord about signage restrictions and confirm the applicable approval process before ordering a sign. Discuss where construction crews can unload, place materials, and remove debris. Restrictions on access or working hours should be reflected in the construction plan.

Ask before you commit: Can customers, suppliers, and construction crews use the property in the ways our plans require?

Your commercial space checklist before signing

Before moving forward with a Michigan commercial lease, aim to have:

• Confirmation of the approval path for your proposed business use.

• A contractor walkthrough and a list of unresolved building questions.

• A preliminary layout and equipment requirements.

• An assessment of major building systems and likely improvements.

• A documented division of landlord and tenant responsibilities.

• A preliminary construction budget with assumptions and exclusions.

• A realistic schedule from planning through opening.

• Professional review of the lease terms.

You do not need every finish selected before choosing a location. You do need enough information to understand whether the property is a practical fit.

Talk with KD Building Company before planning your build-out

If you are considering commercial space in Sterling Heights, Detroit, Grand Rapids, or elsewhere in Michigan, contact KD Building Company to discuss your proposed renovation or tenant build-out.

Bring the property address, available plans, a description of your business, and your target opening date. Those details provide a useful starting point for discussing the construction work your space may need.

Call KD Building Company at (248) 247-4704 or contact us through our website.