Frequently Asked Questions
Can Mediation Help Preserve Business Relationships?
Absolutely. Mediation promotes open dialogue and mutual understanding, allowing parties to maintain or even strengthen their business relationships after resolving conflicts.
Can mediation resolve CAM/NNN reconciliation fights?
Yes, parties can agree on audited expense buckets, caps, true-up credits, a revised chart of accounts, and clearer audit timelines. Outcomes are usually memorialized in a lease amendment with carry-forward rules and future cap language.
How are TI/build-out and change-order disputes handled?
The mediator tests schedules, punch lists, LDs, and who pays code-driven changes. Typical deals: rent-commencement deferral, TI credits, shared costs on unforeseen conditions, and a re-baselined critical-path schedule.
How do brokerage commission/procuring-cause disputes settle?
Parties map the “chain of events,” registration/tail clauses, and tenant/asset carve-outs. Deals often split percentages, define payment triggers (closing, possession, rent start), and assign future renewals/expansions.
How Much Does Commercial Real Estate Mediation Cost?
Costs vary based on the mediator’s experience and the dispute’s complexity, but mediation is typically far less expensive than prolonged litigation or arbitration.
What about earnest-money and escrow releases in PSA disputes?
The session pressure-tests financing, inspection, and title contingencies and “time-is-of-the-essence” dates. Outcomes: split EM, extend closing with new milestones, apply EM as price credit, or convert to liquidated damages with mutual releases.
What CRE disputes fit mediation best?
CAM/NNN reconciliations, TI/build-out delays, use/exclusive-use/radius clauses, percentage-rent calculations, estoppel/SNDA issues, earnest-money/escrow fights under PSAs, title/ALTA survey defects, zoning/entitlement timing, brokerage commission (procuring-cause) disputes, and lender/borrower workouts.
What Role Does The Mediator Play In Commercial Real Estate Mediation?
The mediator acts as a neutral facilitator, helping both sides understand each other’s concerns and guiding them toward a fair, practical agreement—without making decisions or imposing outcomes.
What Types Of Disputes Can Be Resolved Through Real Estate Mediation?
This process can address lease disagreements, purchase or sale contract issues, zoning disputes, financing conflicts, property condition claims, and brokerage commission disputes.
Who Can Benefit From Commercial Real Estate Mediation?
Landlords, tenants, developers, investors, property managers, lenders, and brokers all benefit from mediation as it keeps communication open and avoids damaging business ties.
Why Choose Mediation Over Litigation For Real Estate Conflicts?
Mediation offers speed, cost savings, privacy, and flexibility. Unlike litigation, it allows parties to design creative, deal-focused solutions that protect relationships and business interests.