Racking still up when the lease ends can mean overholding rent

Under many Ontario leases you are a tenant until the space is restored. What one court decided, and how to get the racking out before your date.

Lease end2 min read

Racking frames stacked and banded after a tear-down

Many industrial leases say the space goes back empty, with tenant fixtures removed and the floor made good. Pallet racking bolted to the slab is usually on that list. If the racking is still standing on the last day of the lease, the tenant may still be in the space as far as the landlord is concerned.

This is general information, not legal advice. Your lease and your lawyer decide what applies to you.

What one Ontario court decided

In 1400 Castlefield Road Inc. v. Threadcount Inc., 2015 ONSC 1751, the Ontario Superior Court looked at a tenant that left garbage behind and had not repaired walls, floors and a washroom when the lease ended. The court found the tenant stayed an overholding tenant until that work was done, so overholding rent kept running while the clean-up went on.

A May 2026 article by the law firm McMillan LLP walks through the case and makes two points worth knowing:

  • Restoration costs can be more than the security deposit.
  • Overholding rent is often set higher than the rent you were paying. Check your lease for the rate.

What that means for the racking

The safe plan is for the racking and the anchors to be gone before the lease ends, with time left for a walk-through with the landlord. Work backwards from that day:

  1. Find the restoration clause in the lease and read what it says about racking, anchors and the floor.
  2. Pick the date the space has to be empty. Our crew's last day is the business day before it.
  3. Book at least 10 business days before the crew's last day to hold your date. No rush charge. The date check counts it for you.
  4. Plan the last shipping day so the product is off the racks before the crew's first day.
  5. If the condition of the floor is in question, talk to the landlord early and get the scope in writing.

What we leave behind

Anchors are cut flush with the floor as standard. Walk the floor with us when we finish. If something in the written scope was missed, we come back within two business days.

If more time is truly needed, arrange it with the landlord in writing before the lease ends.

Next step

Run your date through the date check, then send photos for a quote. Source: McMillan LLP, "The Cost of Leaving: Restoring Premises at the End of a Commercial Lease", May 25, 2026.

Send a few photos. A written quote or offer comes back within one business day.

Get a quote Plan it with the Rack Wizard

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