Commercial leases
Drafting, renewal, rent, eviction compensation and assignment: we secure your lease at every stage, for landlords and tenants.
A French commercial lease runs for at least nine years. The tenant may usually terminate at each three-year period and has a right to renewal; a landlord refusing renewal without serious cause must generally pay eviction compensation.
We act for both landlords and tenants: drafting, rent reviews, assignment, renewal, rent setting and eviction compensation proceedings.
Frequently asked questions
Can a landlord refuse to renew a commercial lease?
Yes, but as a rule the landlord must then pay the tenant an eviction indemnity equal to the loss caused by the refusal, unless there is a serious and legitimate reason or another case provided for by law.
Can the rent be reviewed during the lease?
Yes. A three-yearly review is possible, generally capped by the change in the applicable index unless local trading conditions have materially changed. An indexation clause can also provide for automatic adjustment.
How long does a French commercial lease last, and can it be ended early?
A commercial lease is concluded for at least nine years. The tenant may in principle give notice at the end of each three-year period, at least six months in advance; some leases may however exclude this option (leases of more than nine years, single-purpose premises, offices, storage premises). The landlord can only end the lease at the end of a three-year period in limited cases provided for by law.
Official source: Service-Public.fr (official page)
What is a short-term (derogatory) commercial lease?
A derogatory or short-term lease escapes the commercial lease regime for a total duration that may not exceed three years, including renewals. If the tenant remains and is left in possession more than one month after expiry, a new lease arises that is governed by the commercial lease regime, for nine years.
Official source: Service-Public.fr (official page)
Does a commercial tenant have priority if the premises are sold?
Yes, in principle. Since the 2014 Pinel Act, the tenant of commercial or craft premises has a right of first refusal: an owner planning to sell must inform the tenant and offer to sell to them. There are exceptions, in particular for the sale of an entire building containing several commercial units, or a sale to the landlord's spouse, ascendant or descendant.
Which charges and works can be passed on to a commercial tenant?
The lease must include a precise inventory of the categories of charges, taxes and fees, with their allocation between landlord and tenant. Some expenses cannot be charged to the tenant, in particular major repairs within the meaning of Article 606 of the Civil Code (main walls, vaults, entire roofs, retaining walls). Property tax (taxe foncière) can be recharged if the lease so provides.
Official source: Service-Public.fr (official page)
What is the time limit for commercial lease claims?
Claims based on the commercial lease regime are in principle time-barred after two years. This applies in particular to the tenant's claim for an eviction indemnity after a refusal to renew, which must be brought within two years of the date the notice or refusal took effect. This short limitation period is a frequent trap.
Official source: Service-Public.fr (official page)
Insights on this topic (in French)

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