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Commercial Leasing

What are your rights in a commercial lease disagreement?

Commercial tenants have far less statutory protection than residential ones — the lease governs almost everything, and courts generally enforce it as written between business parties. The provisions that cause most disputes are additional rent and operating-cost calculations, renewal and option mechanics, assignment consent, repair obligations, and a landlord's right to distrain or terminate on default.

What to do next

  1. Read the lease against the actual dispute

    Additional rent formulas, exclusions from operating costs, and the audit right (if any) are where money is usually recovered. Many tenants have a contractual right to audit CAM charges and never exercise it.

  2. Diarise every option date

    Renewal and expansion options usually require notice in a precise window and often in a precise form. Missing it by days generally extinguishes the right, and landlords are not obliged to remind you.

  3. Address default carefully and fast

    Landlords may have rights to terminate, distrain on goods, or draw on a letter of credit. Relief from forfeiture may be available but must be sought promptly. Do not let a notice period run while negotiating informally.

  4. Check the assignment and change-of-control clause before any deal

    Selling your business often triggers landlord consent. Consent may be conditional on terms that materially affect the transaction, so surface it early in diligence rather than at closing.

Frequently asked questions

Do commercial tenants have the protections residential tenants do?

Largely no. Commercial tenancy is contractual, and courts generally enforce the lease as written between business parties. The lease is your protection.

Can I audit the operating costs?

Often yes — many leases grant an audit right with a time limit. Reconciliation errors are common and reviewing them frequently recovers real money.

I missed my renewal deadline.

The right is usually lost, though a course of dealing or estoppel argument sometimes helps. Approach the landlord commercially and get advice quickly.

Can the landlord lock me out?

Commercial landlords have stronger remedies than residential ones, including termination and distress in some provinces. Relief from forfeiture may be available but is time-sensitive.

This is general information, not legal advice. Laws vary by location and every situation is different — speak with a qualified lawyer about your specific circumstances.

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By submitting, you agree to be contacted about your inquiry. This is not legal advice and does not create a lawyer–client relationship.

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