September 2024

An informative e-newsletter for the Real Property Law Section of the State Bar of Michigan.

Key Considerations for Outdoor Seating Areas In Commercial Leases

Outdoor Patio

By Todd A. Schafer, Dawda Mann

One element of the landlord-tenant relationship that has evolved in recent years (a trend accelerated by the COVID-19 pandemic) is the increasing demand from food service tenants for the use of space outside the walls of their demised premises for seating. Such spaces can boost foot traffic, enhance visibility, and increase revenue for tenants. Consequently, landlords are more frequently accommodating these requests – with some landlords actively encouraging the creation and use of such areas. However, the terms and conditions governing these exterior spaces often differ significantly from those applicable to a tenant's interior premises. It is crucial for the parties to clearly define these terms in writing, whether in the body of the lease, a rider or an addendum to the lease, or a separate license agreement.

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Real Property Law Academy I
Grand Rapids

L.V. Eberhard Center
GVSU-Conference & Event Planning
301 West Fulton, Eberhard Center Room 201
Grand Rapids, MI

September 17 & 18, 2024
8:30 a.m.–4:30 p.m.

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Real Estate Outlook 2025
The Detroit Athletic Club
November 7, 2024
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Speaker: 8-8:45 a.m.
Roundtables: 8:45-9:45 a.m. (Registrants can attend 2 one-half hour round table sessions)
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August 6-9, 2025
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Interested in writing an article for the e-Newsletter? Contact co-editors Samuel Kilberg at SKilberg@dykema.com or Glen Zatz at gzatz@bodmanlaw.com.

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We are also looking for suggested authors and topics for the Michigan Real Property Review. Please contact Chair-Elect, Jason Long at Jlong@wwrplaw.com for suggested topics and ideas.



The views and opinions expressed in these articles are those of the authors, and they do not reflect in any way the positions of the State Bar of Michigan or the Real Property Law Section. These columns are meant for informational purposes only and should not be construed as legal advice. IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing, or recommending to another person any transaction or matter addressed in this communication.