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ARTICLE · 30 MAY 2024

Shared vs Exclusive Parking Rights In Commercial Leases: The Implications Are Severe

Wildeboer Dellelce LLP
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A recent decision of the Court of Appeal for Ontario (the "Court of Appeal") has shed light on parking rights for both landlords and tenants under a commercial lease.

CanadaReal Estate and Construction
Paul De Francesca
Paul De Francesca
Ana Savic
Ana Savic

A recent decision of the Court of Appeal for Ontario (the "Court of Appeal") has shed light on parking rights for both landlords and tenants under a commercial lease. Metro Ontario Real Estate Limited v. Embee Properties Limited (2024 ONCA 51) concerns a dispute over a shopping centre's common parking lot area. The appellant and owner of the shopping centre, Embee Properties Limited ("Embee"), wanted to expand the shopping centre to accommodate retail space for a new tenant, the Liquor Control Board of Ontario. The expansion would require the reconfiguration of 36 parking spaces directly adjacent to a grocery store operated by Metro Ontario Real Estate Limited ("Metro"), one of the existing tenants of the shopping centre. Metro objected to the expansion, claiming that such an expansion "impermissibly interfered" with the parking spots Metro is entitled to for its customers under its lease agreement with Embee.

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