Key Takeaways:

  • Commercial evictions occur when landlords remove business tenants for lease violations or non-payment.
  • The eviction process varies by state but typically includes notice to the tenant, legal proceedings, and enforcement.
  • Unlike residential tenants, commercial tenants have fewer protections, making lease agreements crucial.
  • Common lease violations leading to eviction include non-payment, property damage, and illegal activities.
  • Legal considerations such as lease terms, local laws, and the right to cure a default can impact the eviction process.
  • Alternative solutions, like mediation or renegotiation, may be preferable to avoid costly evictions.
  • Seeking legal assistance ensures compliance with eviction laws and minimizes risks for landlords.

A commercial lease eviction occurs when a landlord wants to remove their tenant from a piece of commercial property.

Overview of Commercial Lease Evictions

A landlord may seek a commercial lease eviction for countless reasons. For instance, the tenant may have stopped paying rent, or they may have broken their lease agreement in some way. A commercial lease eviction should be a last resort after other efforts to resolve the issue have failed. Going through an eviction can be very unpleasant, and it is usually very difficult to evict a tenant from a commercial property.

In addition to being time-consuming and costly, commercial lease evictions can also be dangerous in certain circumstances. If you are a landlord who needs to evict a commercial tenant, you should be sure to get help from a knowledgeable attorney. Also, by making sure that the terms of your lease agreement are clear and strong, eviction should be much easier.

Commercial tenants generally do not have access to the same protections as residential tenants. When evicting a commercial tenant, however, you are still required to follow the legal procedures in your state. You will also need to follow the terms in your lease agreement related to eviction.

If your tenant does not follow the conditions of the lease, this can provide you with grounds for eviction. On the other hand, if your tenant is abiding by the lease agreement and is paying their rent on time, they cannot be evicted and will remain on your property until the lease ends.

Common Reasons for Commercial Eviction

Commercial landlords may pursue eviction for various reasons, including:

  • Non-payment of rent – The most common cause of eviction, requiring landlords to issue a formal demand for payment before proceeding with legal action.
  • Lease violations – Failure to comply with lease terms, such as unauthorized subletting, prohibited business operations, or exceeding occupancy limits.
  • Property damage – Tenants causing significant damage beyond normal wear and tear may be subject to eviction.
  • Illegal activity – Conducting unlawful business or violating zoning regulations can prompt immediate eviction proceedings.
  • Breach of maintenance obligations – Some leases require tenants to maintain the premises; failure to do so may justify eviction.

What Commercial Landlords Should Know About Eviction

The most important part of being a landlord is to make sure that your lease agreements are written in such a way that it would be difficult for a tenant to dispute an eviction. When a lease agreement is unclear, it can easily result in a dispute between a tenant and a landlord. Because lease agreements will define the landlord-tenant relationship for long periods of time, it's best to consult an attorney before signing an agreement. This is true whether you're a landlord or a prospective tenant.

When writing a commercial lease agreement, several crucial questions must be kept in mind:

  • Will the lease be a triple net lease or an all-inclusive lease?
  • Will the tenant be offered the ability to extend or renew their lease, and if so, what rate will be charged?
  • Will there be a rent escalation clause in the lease?

These are questions that must be answered by the landlord. Tenants also must be very careful about reviewing what the terms of the lease will be. For example, the tenant needs some assurance that the landlord won't rent another property to a competitor of the tenant. The tenant should also make sure that there is some language that defines what will happen if the property is not ready to be occupied on the commencement date of the lease.

It's also important that a lease agreement defines what counts as a default and what will happen if the default occurs.

Legal Protections for Commercial Tenants

Unlike residential tenants, commercial tenants have fewer legal protections. However, they still have rights, including:

  • Right to notice – Most jurisdictions require landlords to provide written notice before initiating eviction.
  • Right to cure – In many cases, tenants must be given an opportunity to correct lease violations.
  • Protection against wrongful eviction – A landlord cannot use self-help measures, such as changing locks or shutting off utilities, without court approval.
  • Lease enforcement – If a landlord violates lease terms, a tenant may have grounds for legal action.

Landlords should be aware of state-specific laws to ensure compliance and avoid costly legal disputes.

Steps of a Commercial Lease Eviction

When a landlord needs to evict a commercial tenant, they are required to abide by the rules of the Forcible Entry and Detainer (FED) statute. The same eviction process can be used for commercial and residential tenants. If you are evicting a commercial tenant in Colorado, you should be aware that self-help evictions are not allowed.

This means that commercial tenants can only be evicted if there has been a default of the lease agreement, and they have been notified of the default and been given a chance to fix the problem. A three-day notice is the most common term for an eviction notice. These notices can either be delivered to the tenant personally or can be posted on the commercial property.

Most commercial lease evictions will follow the same basic steps:

  • A notice will be provided to the tenant.
  • Once the notice has expired, the landlord can file a complaint with the court, which will then issue a summons that starts the process of judicial eviction. A disinterested party must deliver the summons to the tenant.
  • The tenant must respond to the summons based on the deadline within. They will need to explain why they are not at default. If the tenant does not respond, the court will usually judge that they can be evicted.

Alternatives to Eviction

Eviction can be costly and time-consuming. Before proceeding, landlords may consider:

  • Negotiation – Discussing payment plans or lease modifications to resolve disputes.
  • Mediation – Involving a neutral third party to facilitate a fair resolution.
  • Voluntary move-out agreements – Offering incentives for tenants to vacate without legal action.
  • Lease buyouts – Landlords may compensate tenants to terminate leases early, reducing legal risks.

Exploring these alternatives can save both parties time and expenses associated with litigation.

Frequently Asked Questions 

1. How long does a commercial eviction take?The timeline varies by state but typically ranges from a few weeks to several months, depending on court proceedings and tenant responses.

2. Can a landlord evict a commercial tenant without a reason?No, landlords must have legal grounds, such as non-payment or lease violations, to evict a commercial tenant.

3. What should a commercial lease include to protect landlords from eviction disputes?A lease should clearly define rent obligations, default conditions, dispute resolution mechanisms, and eviction procedures.

4. What happens if a commercial tenant refuses to leave after eviction?Landlords must obtain a court order and work with law enforcement to remove the tenant legally.

5. Can a tenant fight a commercial eviction?Yes, tenants can challenge evictions by proving compliance with lease terms, disputing claims, or negotiating a resolution with the landlord.

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