Mind The Lease: Timely Issues Shaping Commercial Lease Negotiations

From the return-to-office push across Canada and liquidation of the Hudson’s Bay Company in 2025 to the rapid rise of artificial intelligence and broader economic shifts, there is a lot going on in the world of commercial leasing. In turn, several legal issues are becoming central to lease negotiations. 

Below are five timely issues shaping these negotiations.

1. Hudson’s Bay Company Lessons Learned. The refusal of the court to facilitate the forced assignment of leases in the Hudson’s Bay Companies’ Creditors Arrangement Act (CCAA) proceedings is a reminder of the extraordinary nature of section 11.3 of the CCAA and the relief it provides for. The decision provides guidance on section 11.3 (1) of the CCAA, including the importance of the monitor’s recommendation, whether the assignment forms part of a going-concern transaction, and whether the assignee can perform both monetary and non-monetary contractual obligations. The decision also clarifies what will qualify as a true ipso