5 Common Commercial Lease Disputes (And How to Protect Your Business)

Commercial leases are high-stakes agreements. Whether you’re a landlord or a tenant, a lease breach can disrupt your operations and cost tens — even hundreds — of thousands of dollars. In high-rent markets like New York and New Jersey, lease disputes often escalate quickly into litigation.

In this article, we’ll break down the five most common types of commercial lease disputes and what you can do to protect your business.

1. Nonpayment of Rent

This is the most common lease dispute — and often the most urgent. Landlords rely on timely rent payments to meet their own obligations. If a tenant stops paying, the landlord may pursue remedies such as:

• Notices to cure or quit
• Lease termination
• Lawsuits for past-due rent
• Recovery under personal guaranties

Tip: Landlords should keep detailed ledgers and ensure rent demands comply with lease and legal notice requirements. Tenants should document any offset claims in writing.

2. Holdover Tenancy (Tenant Won’t Leave)

When a lease ends and the tenant refuses to vacate, landlords face a holdover situation. In most leases, holdovers trigger significantly higher “use and occupancy” rates or liquidated damages.

Key risks:

• Loss of new incoming tenants
• Disruption of space renovations
• Costly eviction proceedings

Tip: Landlords should act fast to serve proper notices. Tenants should negotiate extensions early to avoid losing leverage.

3. Maintenance & Repair Obligations

Disputes often arise over who is responsible for repairs and maintenance — especially in triple net (NNN) leases. Tenants may argue that landlords failed to repair structural issues. Landlords may claim tenants damaged the property.

Common issues include:

• HVAC breakdowns
• Plumbing, roof leaks
• ADA compliance disputes

Tip: Both parties should review the lease carefully to confirm scope of repair obligations — and document all repair requests and responses.

4. Breach of Use or Exclusivity Clauses

Many commercial tenants negotiate for exclusive use clauses (e.g., no other coffee shop in the plaza). When landlords lease to a competitor, tenants may claim breach.

Similarly, landlords may sue if tenants use the space outside the lease purpose (e.g., warehouse use in a retail-only space).

Tip: Review exclusivity language closely before leasing multiple units. Tenants should send written objections early if exclusivity is breached.

5. Subleasing and Assignment Disputes

Most commercial leases restrict subleasing or assignment without landlord approval. Disputes arise when:

• Tenants sublet without permission
• Landlords unreasonably withhold consent
• Sublets violate exclusivity or permitted use clauses

Tip: Landlords should create clear procedures for sublease requests. Tenants should retain all email evidence of consent discussions.

Protecting Your Business: Proactive Legal Review

Lease disputes can often be avoided with careful planning:

• Get leases reviewed before signing
• Negotiate key clauses (use, repairs, sublease, holdovers)
• Preserve written records of all notices and conversations
• Enforce defaults quickly — delay weakens your legal position

Get Experienced Legal Help

Whether you're a landlord seeking to recover rent or a tenant facing lease termination, we can help. Our firm handles commercial lease disputes throughout New York and New Jersey — with a track record of fast, effective resolution.

Schedule a consultation today.