2501306 Ontario Inc. v. Country Garden Academy Inc.
Split/Other wins · Newmarket · 2021-05-19
- Adjudicator
- Justice C.F. de Sa
- Dispute
- Rent Increase
- Landlord
- 2501306 Ontario Inc.
- Tenant
- Country Garden Academy Inc.
- Landlord rep
- Sara Erskine
- Tenant rep
- Gwendolyn Adrian
What happened
The landlord and tenant could not agree on the prevailing market rates for the renewal of a commercial lease for a Montessori school property. The lease stipulated that the renewal rent would be based on prevailing market rates for comparable premises. The landlord sought a higher rent based on their appraiser's opinion, while the tenant argued for a lower rent based on their appraiser's report.
The ruling
The court determined that the appropriate market rent for the renewal period of December 1, 2020 through November 30, 2023 is $18.00 per square foot per annum. This rate is higher than the tenant's expert's opinion but lower than the landlord's proposed rate. The decision was based on a consideration of both expert reports, comparable properties, and the specific characteristics of the subject property.