Alternative Dispute Resolution (ADR) Management in Multi-Tenanted Commercial Real Estate Property in Kaduna, Nigeria

Abstract

Conflict is endemic to human society, among individuals and groups, its management is imperative. This study is posed to assess the acceptance of Alternative Disputes Resolution (ADR) options in commercial real estate properties. The research is aimed to determine the causes of disputes, preferred methods of disputes resolution in multi-tenanted commercial real estate properties and residents’ satisfaction with the various alternative dispute resolution options. The study adopted a quantitative approach, where data was collected using questionnaires from 120 residents of two multi-tenanted commercial properties in Kaduna using randomly sampling method. The study revealed that the major causes of dispute in multi-tenanted commercial properties are that rent repayment, maintenance responsibility and service charge with mean score of 4.0190, 3.8667, 3.5333, 3.3429, which ranked first, second, third and fourth respectively. However, negotiation was revealed to be the most preferred ADR option within the commercial real estate sub-sector, followed by mediation, arbitration, and litigation with average mean score of 4.0286, 4.0095, 3.9202, and 3.9397. Furthermore, residents’ satisfaction with the administration of alternative method of dispute resolution was high with a mean score of 4.3752. This indicates that occupants of multi-tenanted commercial real estate are highly satisfied with the level of the administration of alternative dispute resolution. The study infers that ADR is a widely accepted practice for dispute resolution in property/facility management. The research concludes that ADR is a preferred and satisfactory method for dealing with disputes among tenants and with landlords in multi-tenanted commercial real estate. Hence, recommends that rent reviews clause, period and maintenance with service change administration schedule should be properly agreed on at the inception of the tenancy. Also, ADR is highly recommended to practicing Estate Surveyors and Valuers into property management.