ARTICLE
3 August 2022

Landlord Redevelopment Rights – The Details Matter!

MG
Minden Gross LLP

Contributor

Minden Gross LLP is a full service business law firm providing counsel in the broad areas of real estate, corporate/commercial transactions, litigation, securities and capital markets, and employment and labour law with global reach through Meritas Law Firms Worldwide. We also advise clients in personal matters related to tax and estate planning.
Commercial landlords often try to maintain as much flexibility with their tenants as possible in order to allow themselves the opportunity to redevelop their properties in the future.
Canada Real Estate and Construction
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Introduction

Commercial landlords often try to maintain as much flexibility with their tenants as possible in order to allow themselves the opportunity to redevelop their properties in the future. The method for achieving such flexibility typically comes in the form of a demolition or "demo" clause contained in the landlord's standard form of lease. The "demo" clause is intended to give a landlord the unilateral right to terminate the lease if the landlord wishes to demolish, alter, or redevelop the property.

Landlords and tenants alike have probably already seen, heard, or read about the surge of redevelopment in the industry. Thanks to the pandemic, the trend is bound to continue well into the future. As a result, now is a good time to take a closer look at the "demo" clause.

A Material Term

It is well established in law that for an agreement to lease to be binding, the following essential elements need to be clearly identified:

  1. the parties;
  2. the premises;
  3. the commencement date;
  4. the duration of the term;
  5. the rent; and
  6. any other material terms (which have subsequently been defined by case law).

Download

Commercial Leasing Bulletin: Landlord Redevelopment Rights – The Details Matter! (mindengross.com)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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