Commercial property disputes are disagreements involving buildings or land used for business purposes. This could be an office, shop, warehouse, industrial unit, hospitality venue or any other premises that a business operates from or invests in.
These disputes can be disruptive and costly, because they often affect rent, cash flow, operations and the long term value of the property.
Unlike residential property issues, commercial disputes tend to move quickly and involve stricter contractual terms. Leases are usually more complex, deadlines can be tight and the financial stakes are often higher.
That’s why understanding what counts as a commercial property dispute and recognising the early warning signs can make a real difference.
This guide explains what commercial property disputes are, who they commonly involve and the types of conflict that arise most often.
What counts as a commercial property dispute?
A commercial property dispute is any legal conflict linked to business premises or commercial land. Most disputes arise between landlords and tenants, but they can also involve developers, neighbouring owners, investors, lenders or business partners who share ownership.
The dispute might relate to a lease, ownership rights, use of the property, maintenance obligations or payment issues. Sometimes the disagreement is about what the contract means. Other times it is about whether one party has breached it. Either way, the dispute centres on a commercial property interest and the legal rights attached to it.
Even when a dispute starts as a straightforward issue, it can rapidly escalate. A missed rent payment can lead to forfeiture threats. A disagreement about repairs can delay a lease renewal. A change of use can create arguments about unauthorised alterations. Getting ahead of the issue early often prevents it becoming much more expensive later.
The most common types of commercial property dispute
Commercial property disputes cover a wide range of situations. Some are about money, others are about rights and control. Below are some of the most common examples.
Rent and arrears disputes
Disputes about rent are among the most frequent. These can involve non payment, part payment, late payment, disputes about interest or arguments about repayment arrangements. In some cases, businesses believe rent was suspended or reduced due to negotiations, while landlords believe full rent remains due. Clarity in the lease and in written correspondence is crucial here.
Rent review disputes are also common. Many leases include rent review clauses that allow rent to rise at set intervals. Problems arise when parties cannot agree what the new market rent should be or when one side believes the review mechanism has not been followed properly.
Related: How to Challenge an Unfair Rent Review in a Commercial Lease
Lease renewal and termination disputes
Commercial tenants may have a right to renew their lease when it ends, depending on the lease terms and whether the tenancy is protected. Disputes arise when landlords oppose renewal, when the parties cannot agree on new terms or when notices are served late or incorrectly. These cases can be high risk because missing a deadline may mean losing the right to stay in the premises.
Termination disputes often involve break clauses. A tenant may try to exercise a break option, but the landlord argues the conditions have not been met. These conditions might include giving proper notice, leaving the property in a certain condition or clearing any rent arrears. A small technical error can invalidate a break notice so these disputes are rarely simple.
Dilapidations and repair disputes
Dilapidations refer to repair and reinstatement obligations under a lease. Disputes often surface at the end of a lease when a landlord claims the tenant must pay for bringing the property back to the required condition.
Arguments tend to focus on the scope of works, the cost and whether the tenant is actually responsible for the items listed. Tenants may feel a claim is exaggerated. Landlords may feel the tenant has left the property in a poor state. Evidence such as surveys, photos and the wording of the repair clause is central here.
See more: Understanding the Dilapidations Protocol for Commercial Leases
Service charge disputes
Service charges are another frequent source of disagreement, especially in multi unit buildings or estates where costs are shared between occupiers. Problems arise when tenants believe charges are unreasonable, not allowed under the lease or not properly evidenced. Landlords usually need to show that costs were genuinely incurred, relate to services permitted by the lease and have been apportioned fairly.
Tenants may also challenge one off charges for major works, cleaning, security, lifts or repairs they feel deliver little benefit to their unit. Clear accounting and communication can help avoid escalation, but where trust breaks down, these disputes can quickly become formal.
Assignment, subletting and change of use disputes
Commercial tenants often want flexibility to assign a lease, sublet part of the premises or change how they use the property as the business evolves. Most leases allow this only with landlord consent and disputes occur when consent is refused, delayed or granted with conditions the tenant considers unfair.
Another common issue is unauthorised subletting or use. If a tenant takes on occupiers without permission or runs a different type of business from the one allowed in the lease, the landlord may claim breach of contract. These cases can be serious because they may lead to forfeiture action if not resolved.
Forfeiture and possession disputes
Forfeiture is the landlord’s right to bring a lease to an end early because of tenant breach. This is commonly linked to rent arrears, but it can also relate to unauthorised alterations, unauthorised use or failure to repair.
Disputes may centre on whether the breach is serious enough, whether the landlord has followed the correct legal process or whether the tenant has a right to relief. Tenants often apply to the court to reinstate the lease after forfeiture, especially if the premises are critical to their business. Timing is important here, because delays can reduce the chance of keeping the lease.
Boundary, access and easement disputes
Not all commercial property disputes are about leases or payments. Some involve the rights attached to the land itself and its boundaries.
Examples include disagreements about rights of way, shared loading areas, parking arrangements, delivery access or maintenance of shared roads. There may also be disputes involving nuisance, such as noise, fumes, obstructed access or building works affecting neighbouring premises. These issues can directly impact how a business operates so they often require urgent attention.
Why commercial property disputes happen
Many disputes come down to mismatched expectations or unclear lease drafting. Commercial leases can be long, detailed and sometimes outdated by the time a dispute arises. If key clauses are vague, for example about repairs, rent reviews or consent rights, conflict becomes more likely.
Financial pressure is another trigger. A tenant struggling with cash flow may fall behind on rent, while landlords may rely on that rent to service loans or meet their own obligations. When the stakes are high, the tone of correspondence can quickly harden.
Changes in business needs also play a role. A tenant might need to adapt premises, sublet part of a unit or exit early, while a landlord may want redevelopment, higher rent or a different tenant mix. These shifting priorities often bring old lease terms under the spotlight.
How commercial property disputes are usually resolved
Many disputes resolve through negotiation once both sides understand the legal position. Early correspondence between solicitors can clear up misunderstandings and help parties reach a practical compromise.
If negotiation stalls, mediation or another form of alternative dispute resolution can be a cost effective next step. These processes allow parties to explore settlement without the expense and rigidity of court.
Where settlement is not possible, court proceedings may be needed. This is more common in forfeiture cases, complex dilapidations disputes, contested lease renewals or high value claims. In those situations, following the correct legal process and meeting notice deadlines is essential.
Practical steps if you are facing a dispute
Start by reviewing the lease, title documents or contract carefully. Most commercial property disputes are decided by what the documents actually say, not what one party assumed they meant.
Gather your evidence early. That might include rent statements, inspection reports, photographs, emails, letters, service charge accounts or correspondence about consent requests. The more complete your evidence, the easier it is to assess your position accurately.
Try to avoid informal agreements without advice, especially if the dispute involves lease rights or deadlines. Even well meaning conversations can create legal risk if they are not properly recorded or understood.
Most importantly, seek advice before serving notices, refusing consent or taking enforcement steps. Commercial property law is technical and a small procedural mistake can have major consequences.
If you’re dealing with rent issues, lease renewal problems, dilapidations, service charges, subletting disputes or threats of forfeiture, early advice from experienced commercial property solicitors helps you protect your interests and avoid unnecessary escalation.
Expert advice and support for commercial property matters
Please note that this article is solely for informational purposes. It’s not a substitute for legal advice. We encourage readers to contact Osbourne Pinner for case-specific guidance.
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