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ARTICLE · 02 OCTOBER 2026

Key Items For Redevelopment Termination Rights In Commercial Leases

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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Blake, Cassels & Graydon LLP

Blake, Cassels & Graydon LLP

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With urban densification and asset repositioning reshaping commercial real estate across Canada, aging properties are giving way to mixed-use towers, transit-oriented developments and modern office campuses. For landlords, the ability to terminate a lease can unlock redevelopment potential; for tenants, an unexpected termination can disrupt operations and erode years of capital investment.

CanadaReal Estate and Construction
Jean-Simon Lamarre
Jean-Simon Lamarre
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With urban densification and asset repositioning reshaping commercial real estate across Canada, aging properties are giving way to mixed-use towers, transit-oriented developments and modern office campuses. For landlords, the ability to terminate a lease can unlock redevelopment potential; for tenants, an unexpected termination can disrupt operations and erode years of capital investment. Redevelopment and demolition termination clauses sit at the intersection of these competing interests. As courts tend to enforce clear contract terms as written, provided termination rights are exercised in good faith, careful drafting is essential.

Before signing a lease, landlords and tenants should consider these five practical points:

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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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