Drafting a commercial lease agreement that minimizes potential legal issues is an art as much as it is a science. In Ontario, landlords have been increasingly cautious, especially given the rise in disputes related to force majeure clauses following the pandemic.
A key component of a well-drafted lease is the clarity in terms surrounding rent abatement during unforeseen circumstances. Recent high-profile cases have underscored the importance of explicitly defining “force majeure” and the obligations it triggers for both parties. Failure to address these clauses appropriately can leave landlords exposed to revenue loss during unexpected closures.
Another consideration is the negotiation of common area maintenance (CAM) fees. Tenants are becoming more vocal about transparency in CAM charges, and landlords should be prepared to provide detailed, clear breakdowns of these costs in the lease. Ensuring your lease agreement is airtight can save both time and legal costs down the line. If you need help crafting or reviewing a commercial lease, reach out to ensure your interests are protected.
