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Commercial Lease Disputes

Commercial leases establish an agreement between the landlord and the tenant, wherein the tenant usually leases the premises for a set term, under a set fee and other conditions. Disputes in commercial leases are usually resolved through negotiation, but the matters involved can be many and the parties may be adamant about their position – so many commercial lease agreements actually contain a dispute resolution clause.

Dispute resolution clauses usually set out a procedure and an arbitrator to hear the case so that the matter is not taken to the courts but heard expeditiously and in a cost-effective manner. However, it is important to note that prior to getting to the point where arbitration is the only solution, during the negotiation stage, mediation is usually a viable option. Commercial lease disputes may arise over things such as rent review, inadequate maintenance/repairs, and allocation of property taxes.

In the event there is no mandatory mediation or arbitration clause, a breach of a commercial lease normally leads to an action or arbitration with the courts.