Problem Tenancy / Single-Tenant Risk

Sell Through a Difficult Tenancy or Single-Tenant Risk

A difficult tenant or a single-tenant building can turn a good asset into a constant worry. Arrears, a lease dispute, a tenant in financial trouble, or one occupant carrying the whole building all put the risk on you. We buy industrial property with the tenancy as it stands, so you can hand over the problem instead of fighting your way through it before you can sell.

Off-Market & Confidential
A Direct Principal Buyer
No Listing Commissions
Any Condition or Situation

The Situation

When the Tenancy Is the Problem

Tenancy problems come in different shapes. Sometimes it is a single tenant who is behind, in dispute, or clearly struggling. Sometimes the issue is concentration: one occupant carries the whole building, so their trouble is your trouble. Either way, the risk sits with the owner, and it can make a building hard to finance and hard to sell through a normal process.

  • Arrears or a lease dispute

    A tenant behind on rent, a holdover, or an open dispute over the lease drains time and money and casts a shadow over any attempt to sell in the usual way.

  • A tenant in financial trouble

    When the occupant's business is failing, the income you are relying on is at risk, and a conventional buyer will price that uncertainty harshly or walk away.

  • Single-tenant concentration

    One tenant carrying the entire building means one lease event, one renewal, or one insolvency decides the fate of the asset. That concentration risk is yours to hold.

  • Below-market or awkward leases

    A long lease at a below-market rent, unusual terms, or a difficult multi-tenant mix can depress value and make the property awkward to market.

A Direct, Off-Market Sale

Hand Over the Risk, Not Just the Keys

A difficult tenancy is a problem we are equipped to take on. Because we are a principal buyer, we can purchase the building with the tenancy in place and deal with the situation ourselves, instead of requiring you to resolve it before a sale. You move the risk off your books rather than spending months and legal cost trying to clear it first.

  • We underwrite the situation

    Arrears, a dispute, a shaky tenant, a below-market lease, or single-tenant concentration. We factor the tenancy into the offer and take it on rather than asking you to fix it first.

  • A direct principal buyer

    You deal with the party that holds the capital and will own the problem, not a broker running a process that stalls the moment the tenancy is examined.

  • Certainty and speed

    We control our own capital, so there is no financing condition that a nervous lender could pull over the tenancy. We close on a timeline that suits you.

  • Off-market and confidential

    No listing and no sign, so the sale does not become known to the tenant, other occupants, or the wider market while it is arranged.

  • No listing commissions or broker fees

    A marketed sale carries brokerage commissions and a marketing process. A direct sale to us does not.

  • Flexible deal structures

    How the lease, any arrears, and the timing are handled can be built into the structure of the deal, agreed between us up front.

Ontario & Alberta

Commercial Tenancies by Province

Industrial leases are commercial tenancies, which sit outside the residential tenancy regimes and are governed largely by the lease itself and each province's commercial framework. That is why a tenancy problem on an industrial building is handled differently from a residential one, and why the terms of your lease matter so much.

Ontario

In Ontario, industrial leases are commercial tenancies governed by the Commercial Tenancies Act, not the Residential Tenancies Act, so the rights and remedies of landlord and tenant come mainly from the lease and that Act. A purchaser typically takes the building subject to the existing lease, stepping into the landlord's position. Because the remedies for arrears or default are technical and time-consuming, an owner is often better handing the tenancy to a buyer set up to manage it. We take the building with the tenancy in place.

Alberta

In Alberta, industrial leases are likewise commercial tenancies, governed by the lease and Alberta's commercial leasing framework rather than the residential tenancy rules. A buyer generally acquires the property subject to the lease and assumes the landlord's role. Landlord remedies such as distress and termination follow the lease and the applicable law, and pursuing them takes time and cost. Selling the building with the tenancy assumed lets you exit without first fighting the tenancy to a conclusion.

References: Commercial Tenancies Act (Ontario), Alberta Land Titles.

Nothing on this page is legal advice. Commercial tenancy rights and remedies depend on the lease and the governing law. Confirm the specifics for your property and tenancy with your own lawyer.

How It Works

A Direct Sale in Three Steps

  1. 1

    Tell us about the property

    Send the address, the building details, and the tenancy picture, including the lease terms, any arrears, and any dispute or default. No listing, no obligation.

  2. 2

    We review and make an offer

    We assess the property and the tenancy as a principal buyer and come back with a clear offer that reflects the situation as it stands. There is no financing condition on our side.

  3. 3

    Close on your timeline

    We agree how the lease and any arrears are handled, complete our diligence, and close through a lawyer on a schedule that works for you.

Common Questions

Tenancy & Single-Tenant Risk FAQ

Can you buy the building with the tenant still in place?

Yes. We can purchase the property subject to the existing lease and assume the landlord's position at closing. You do not have to remove the tenant or end the lease before selling; the tenancy comes with the building.

The tenant is in arrears. Does that stop a sale?

No. Arrears are part of the picture we underwrite. Tell us the amounts and the status, and we factor them into the offer and agree how they are handled at closing. You do not need to recover the arrears first.

Do I need to resolve the lease dispute before selling?

No. An open dispute or default can be dealt with as part of how we structure the purchase. We take the tenancy as it stands rather than requiring you to litigate or settle it to a conclusion before you can exit.

My building depends on a single tenant. Is that a problem for you?

Single-tenant concentration is a risk we are comfortable pricing. Where one occupant carries the whole building, we assess the lease, the tenant, and the property together and make an offer that reflects that reality, which is often better than the discount a conventional buyer would demand.

The lease is well below market. Can I still sell well?

Yes. A below-market or awkward lease depresses what a conventional buyer will pay, but we look at the property and the lease as a whole, including its future, when we underwrite. That often produces a cleaner outcome than trying to market the building with the lease attached.

Related Situations

Other Situations We Handle

Get an Offer

Move the tenancy risk off your books.

Tell us about the property and the tenancy, and we will review it as a principal buyer and come back with a clear, off-market offer with the lease assumed. No listing, no broker fees, no obligation.

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