A dispute between a retail or commercial landlord and its tenant can arise from many circumstances. An experienced leasing disputes lawyer can expertly assess the prospects of success in the dispute and plot a solution to achieve a favorable outcome.
The eight most common forms of complaints in commercial or retail leases arise from rent or market rent reviews; interruption to access; changes to tenancy mix; refusing consent to an assignment; options; make good; structural and capital repairs; and liability under directors guarantees;
Market rent disputes
Leases usually provide for rent escalation by way of a fixed percentage increase; by reference to CPI increase or by “review to market”. The rent escalation clause should be carefully examined to determine whether or not the method used is lawful and correct.
In retail leases market reviews must be conducted by “Specialist retail valuer’s” and can be challenged. Ratchet rent escalation provisions i.e. “CPI or 3% whichever is higher” are not permitted.
Lease Disputes: Commercial Tenant + Landlord
Looking to get an assessment of your prospects of success in a lease dispute? Try our interactive case assessment tool for an indication of in whose favour the dispute is likely to resolve.
Notwithstanding the rules are reasonably clear, disputes occur. See here for an example of how the court has dealt with this type of dispute.