Introduction
As commercial real estate (CRE) faces rising interest rates, stricter ESG requirements, and evolving tenant needs, the risk of high‑stakes disputes grows. This analysis—grounded in expert‑witness experience at PotterExpertWitness.com—offers a strategic overview of the litigation hotspots you’ll encounter in 2024, with clear guidance on risk drivers and preventative measures.
ESG Compliance and Dispute Risks
• Green Certification Claims: Inaccurate or incomplete LEED, BREEAM, or WELL certification disclosures can spark “greenwashing” lawsuits when tenants or investors allege misrepresentation.
• Energy‑Pass‑Through Conflicts: Landlords seeking to recover costs for solar installations or HVAC upgrades via CAM charges may face challenges if lease language isn’t impeccably drafted.
Industrial & Logistics Facility Litigations
• Supply‑Chain Breach Damages: Automation failures, cold‑chain breakdowns, or delayed build‑outs often lead to seven‑figure damage claims under breach‑of‑contract theories.
• Adaptive Reuse Zoning Disputes: Transformations of big‑box warehouses into data centers or mixed‑use campuses frequently uncover entitlement and zoning conflicts, underscoring the need for seasoned expert testimony.
Multifamily Lease & Habitability Disputes
• Amenity‑Shortfall Claims: Promised co‑working hubs, fitness centers, or pet‑care facilities that underdeliver can trigger rent‑abatement demands or class actions.
• Escalation‑Clause Contests: CPI‑linked rent‑increase clauses are hotly litigated when tenants contest “fair market” definitions or the timing of adjustments.
Office Retrofits & Tenant Improvement Claims
• Hybrid‑Ready Build‑Out Failures: Incomplete touchless‑entry systems or AV installations give rise to “constructive eviction” claims and disputes over tenant‑improvement reimbursements.
• Turnover Damage Ambiguities: Vague “normal wear and tear” lease provisions often escalate into costly remediation claims at lease end.
Financing, Refinance & Interest‑Rate Litigation
• Rate‑Cap Disclosure Suits: Borrowers on floating‑rate loans may allege negligent structuring if rate‑cap terms weren’t clearly disclosed, leading to unexpected cost spikes.
• Valuation Discrepancies: As cap rates expand alongside Treasury yields, expect more appraisal disputes over “going‑concern” versus forced‑sale valuations.
Conclusion
The complexity of CRE disputes in 2024 demands rigorous contract drafting, proactive risk assessments, and early engagement of expert‑witness counsel. By understanding these litigation trends—ESG claims, supply‑chain breaches, amenity disputes, retrofit failures, and financing controversies—stakeholders can better safeguard assets and streamline dispute resolution.