Commercial lease disputes in Dallas span the full spectrum of issues: tenant defaults on rent or CAM, holdover after lease expiration, alleged breaches by the landlord, exclusive-use violations, co-tenancy claims, casualty allocation disputes, ROFR/ROFO disputes, assignment and subletting consents, estoppel certificate disputes, and outright lease termination litigation. Most of these never make it to a courtroom; they’re worked out in negotiation, mediation, or settlement. But the ones that do go to court are decided primarily on the lease document itself, and Texas commercial leasing operates with a much lighter statutory overlay than residential leasing does. The lease drives nearly everything. This guide explains the kinds of commercial lease disputes Dallas-area landlords most often face, how Cook Keith & Davis approaches them, and what landlords should know before a dispute escalates.
Most of our commercial lease dispute work comes from landlords who have a tenant problem developing and want to know what their leverage and options actually look like before they commit to a course of action. Most commercial landlords think the leverage comes from the default. Usually it doesn’t. It comes from the lease language they signed three years earlier, and from whether they’ve quietly waived rights through silence and partial acceptance in the months since the trouble started. Doing that analysis correctly at the front end usually changes what the dispute looks like.
The Dallas commercial leasing market
Dallas is one of the largest commercial real estate markets in the country, with significant inventory across office, retail, industrial, flex, and mixed-use product. The Dallas market characteristics that affect lease disputes:
- A deep tenant base across multiple industries (financial services, technology, healthcare, logistics, retail, energy) that produces different default patterns by sector.
- A landlord side that ranges from individual owner-operators of single buildings to institutional REITs holding large portfolios.
- Strong demand in certain sub-markets (Uptown, Plano/Frisco corridor, Las Colinas, the airport corridor) that produces aggressive lease terms and competitive renewal dynamics.
- Softer demand in other sub-markets (older suburban office, secondary retail) that produces more flexible landlord responses to defaults.
These market characteristics matter in dispute resolution. A default at a fully-leased Class A property in Uptown produces different practical leverage than a default at a 60%-leased older property in a softer sub-market.
The kinds of disputes we handle
- Rent and CAM defaults. The tenant has stopped paying, paid partially, or paid late. The question is whether to cure-and-restore, terminate, or work out alternative terms.
- Holdover. The lease has expired or terminated and the tenant remains in possession. Damages can be substantial under typical commercial holdover language (often 150% or 200% of base rent).
- Lease violations short of nonpayment. Use violations, alterations without consent, signage violations, hours-of-operation violations, exclusive-use breaches.
- Casualty disputes. Fire, flood, or other damage triggers lease provisions on termination, restoration, abatement, and reasonable time periods.
- Co-tenancy and exclusive-use claims in retail. The tenant invokes a co-tenancy clause or an exclusive-use clause to claim rent abatement or termination rights.
- CAM and NNN reconciliation disputes. The tenant disputes the year-end reconciliation, the expense categories, or the allocation method. Audit demands and disputes over audit rights.
- Assignment and subletting consent disputes. The tenant seeks to assign or sublet and the landlord either declines or imposes conditions; the tenant claims unreasonable refusal.
- Estoppel and SNDA disputes. Pre-financing or pre-sale, the lender or buyer requests an estoppel that doesn’t match the tenant’s understanding of the lease.
- Eviction and lease termination litigation. When negotiation fails, the case proceeds to commercial eviction in JP court or commercial litigation in district court.
Texas commercial leasing law in one paragraph
Commercial leases in Texas operate primarily under contract law and the lease document itself. Texas Property Code Chapter 93 provides a thin statutory overlay covering a few specific issues (commercial lockouts, certain landlord remedies, commercial security deposit treatment), but Chapter 92’s detailed residential protections do not apply. Commercial lease disputes are decided primarily on the lease language, with general contract doctrines (waiver, estoppel, election of remedies, mitigation) supplementing the express terms. The contractual nature of commercial leasing means lease drafting matters more in commercial than residential. Disputes that would be resolved by statute in residential cases are resolved by the lease in commercial cases, and unclear lease language produces expensive disputes.
Where the real leverage sits in a commercial lease dispute
The leverage analysis in commercial lease disputes turns on several factors:
- Lease language. The clearer and more landlord-favorable the lease, the more leverage. Common drafting issues that affect leverage: definition of default, cure periods, notice requirements, attorney’s fees provisions, jury waiver, choice of remedy clauses, holdover damages multipliers, mitigation language.
- Tenant financial position. A tenant with no other operations can be pursued aggressively; a tenant with substantial credit can be negotiated with. The financial analysis should happen before the dispute escalates, not after.
- Market conditions. A landlord with strong replacement-tenant prospects has more leverage than a landlord facing a long re-leasing process.
- Personal guaranties. Personal guaranties from owners or principals dramatically change the leverage analysis. Most landlords undervalue them. The thinking goes that the entity is the tenant and the guaranty is a formality. Then the entity stops paying and the guarantor has assets, and the entire posture of the case changes.
- Procedural posture. The landlord who has issued proper notice, documented every default, and preserved every remedy has more leverage at the negotiating table than the landlord who has accepted partial rent, waived defaults through silence, or failed to demand cure on time.
How we approach commercial lease disputes
Our typical workflow on a commercial lease dispute:
- Lease review. The first step is a careful read of the lease against the facts. Most commercial lease disputes turn on specific lease provisions; understanding the lease is the foundation for everything else.
- Default and cure analysis. If the tenant is in default, the analysis covers the exact nature of the default, what cure language applies, what notice requirements apply, and what remedies are available. Election-of-remedies issues are surprisingly common in commercial work.
- Tenant financial analysis. Where appropriate, we evaluate the tenant’s likely ability to perform, cure, or pay damages. This affects whether the case settles or proceeds to litigation.
- Strategy decision. With the lease and the tenant assessed, the landlord chooses between cure-and-restore (work out a payment plan or lease amendment), aggressive enforcement (notice, default, termination, eviction), and somewhere in between.
- Execution. We handle the notice, the cure period, the termination if needed, the lockout (if commercial lockout under Chapter 93 is available), the commercial eviction in JP court, and any related litigation in district court.
- Settlement vs. litigation. Most commercial lease disputes resolve by settlement before trial. Knowing when to push to litigation and when to settle is a judgment call informed by leverage, costs, and the client’s business priorities.
Commercial eviction in JP court
When commercial lease termination requires getting the tenant out, the procedural mechanism is Chapter 24 forcible detainer in JP court, the same court system that handles residential evictions. Commercial cases follow the same SB 38 procedural rules but have some practical differences:
- The lease drives the substantive analysis far more in commercial than residential.
- Tenant defenses tend to be commercial in nature (breach by landlord, frustration, force majeure) rather than residential (habitability, retaliation).
- The amount in controversy is typically higher, and commercial cases that go through appeal can involve larger holdover damages awards.
- Commercial cases often settle on the courthouse steps because the parties have business reasons to avoid further litigation.
What we tell clients before they escalate
Most commercial lease disputes that reach our office can still be resolved without litigation. The leverage analysis tells the landlord where they stand. If the leverage favors the landlord and the tenant is solvent, the dispute usually settles on terms that work for both sides. If the leverage favors the landlord and the tenant is insolvent, the practical question is what the landlord can actually recover, not what the landlord could win on paper. If the leverage favors the tenant, the question is whether to accept the tenant’s terms or pursue a case that may not be worth the cost.
The cases that go to litigation are typically the ones where (1) the lease language is clear enough that the landlord has a strong substantive position, (2) the tenant’s financial position makes recovery realistic, and (3) the parties cannot agree on settlement terms. Outside those three conditions, litigation is rarely the right call.
Frequently Asked Questions
What kinds of commercial lease disputes does Cook Keith & Davis handle?
We represent landlords on rent and CAM defaults, holdover, lease violations, casualty disputes, co-tenancy and exclusive-use claims, CAM reconciliation disputes, assignment and subletting consent issues, estoppel and SNDA disputes, and commercial eviction and lease termination litigation.
How is Texas commercial leasing law different from residential?
Commercial leases operate primarily under contract law and the lease document itself. Chapter 93 provides a thin statutory overlay; Chapter 92's detailed residential protections do not apply. Disputes are decided on the lease, with general contract doctrines supplementing it.
When should a commercial landlord get legal counsel involved in a dispute?
As early as the default starts. By the time the dispute is in active litigation, much of the leverage is locked in by the lease language and the procedural posture established at the front end.
What is commercial eviction in Texas?
Commercial evictions follow the same Chapter 24 forcible detainer process as residential, in JP court, with the same SB 38 procedural rules. The substantive analysis is driven by the lease rather than by statute. JP court is the only proper venue for the eviction; related claims may proceed separately in district court.
What are commercial holdover damages in Texas?
Holdover damages are typically defined by the lease, with most commercial leases providing for 150% or 200% of base rent (sometimes higher) during holdover. Texas courts generally enforce these provisions as liquidated damages if they reflect actual damages rather than functioning as a penalty.
Can a commercial landlord lock out a tenant in Texas?
Texas Property Code § 93.002(c)(3) gives a commercial landlord a statutory right to lock out a tenant who is delinquent in paying at least part of the rent, and no lease clause is required (a lease may modify the section under § 93.002(h)). The landlord must post written notice on the front door stating where the new key may be obtained, and must provide the new key only during the tenant's regular business hours and only if the tenant pays the delinquent rent (§ 93.002(f)). There is no statutory right to retrieve personal property tied to the lockout notice. The procedure is strict and noncompliance creates landlord liability. Lockout is one available remedy but not always the best one.
How do CAM disputes typically resolve?
CAM disputes resolve through audit, negotiation, or litigation, in that order. Most disputes are about specific expense categories, allocation methods, or year-end reconciliation calculations. Audit demands are common; the lease usually defines audit scope and procedure. Litigation is the last resort.
What is the typical timeline for a commercial lease dispute?
Highly variable. Most disputes resolve in 60 to 180 days through negotiation or settlement. Cases that go to commercial eviction in JP court track the SB 38 timeline (21 to 35 days from filing to writ execution). Cases in district court (broader contract claims) can take a year or more.
Should a Dallas commercial landlord use the eviction process or a district court lawsuit?
For possession-only relief, JP court eviction is faster and cheaper. For damages claims (back rent, holdover damages, attorney's fees, mitigation issues), district court typically provides better procedural tools. Most commercial cases use both: JP court for possession, district court for damages.
How does Cook Keith & Davis approach commercial lease disputes?
We start with lease review and default analysis, then assess tenant financial position and procedural posture. From that foundation, we work with the client on strategy (cure-and-restore vs. aggressive enforcement) and execute. Most cases settle; the ones that go to trial are the cases where settlement is unavailable on acceptable terms.
What sub-markets in DFW do you handle commercial lease work in?
All of them. Our commercial lease practice covers Uptown, Downtown Dallas, North Dallas, the Galleria area, Las Colinas, the Plano/Frisco corridor, the airport corridor, and the surrounding DFW metro. We also handle Fort Worth commercial lease work.
How can a commercial landlord position themselves better for future disputes?
Reducing dispute frequency comes down to lease drafting and documentation discipline, and improving dispute outcomes comes down to how quickly the landlord responds when a default starts. On drafting: clearer default, cure, notice, and remedies provisions reduce dispute frequency. On documentation: consistent records on tenant communications, payment history, and notices preserve leverage. On response: silence and partial acceptance create waiver and estoppel issues that hurt later.