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ARTICLE · 19 APRIL 2023

Let's Be Reasonable: Landlord Consents To Lease Assignment

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What sort of things go through a commercial landlord's mind when receiving a notice from its tenant that the tenant wants consent to assign its lease?

CanadaReal Estate and Construction
Simon Crawford
Simon Crawford
Stephanie Brazzell
Stephanie Brazzell
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What sort of things go through a commercial landlord's mind when receiving a notice from its tenant that the tenant wants consent to assign its lease? The answer is, all sorts of things. The landlord may want the space surrendered so it can re-lease it at a higher rental rate. The landlord may doubt the ability of the proposed assignee to perform the obligations under the lease. The landlord may be contemplating demolition and redevelopment and see an opportunity to amend the lease by adding a demolition clause. The landlord may want to use the consent as an opportunity to extract a fee or other benefit from the tenant. The landlord may simply not like the type of business that the proposed assignee wants to conduct on the premises.

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