Landlord Redevelopment Rights 2.0 – The Details Continue To Matter!

As redevelopment plays an increasingly more significant role in the commercial real estate landscape across Canada, particularly in large urban centers, we continue to see increased judicial determination regarding a landlord's exercise of its demolition rights contained in a commercial lease where the landlord wishes to demolish, alter or redevelop its property.

The Meridian Case

In our firm's bulletin dated August 2, 2022, our firm reviewed the recent case of Meridian C.C. Intl. Inc. v. 2745206 Ontario Inc., 2022 ONCA 12 (heard January 4, 2022) where the Ontario Court of Appeal upheld a successful challenge by a tenant to the landlord's exercise of a demolition right in its favour contained in a commercial lease. In that case, the Landlord had the right to terminate the Lease on 180 days' notice if the Landlord desired to remodel or demolish any part of the premises "to the extent that renders continued possession by the tenant impracticable." The Landlord