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Subirats Avocat

Commercial Leases

Secure your lease agreements and protect your rights as tenant or landlord

Commercial leases govern the rental of premises intended for business activities. We assist you in drafting, negotiating, and managing disputes to ensure the sustainability of your business and the security of your investments.

The Commercial Lease

A protective framework for the tenant

1. What is it?

A commercial lease is an agreement between a landlord and a tenant operating a registered business or craft activity. It is entered into for a minimum term of 9 years, with the tenant allowed to terminate every 3 years. This lease grants an automatic right of renewal or, if the landlord unjustifiably refuses, compensation for eviction equal to the value of the business lost.

2. Who is concerned?

  • Registered merchants and artisans
  • Property owners wishing to rent out commercial or craft premises
  • Investors seeking to secure rental income

3. Why is it important?

  • Stability: guaranteed duration and renewal rights
  • Protection of business value: the lease contributes to the economic worth of the business
  • Controlled rent: subject to review every 3 years, with caps (except in cases provided under the Pinel Law)
  • Legal framework: allocation of charges and works regulated since the Pinel Law

4. What we do for you

  • Drafting or reviewing secure commercial leases
  • Optimizing sensitive clauses (activity, charges, termination, rent indexation)
  • Assisting with renewals or changes in permitted use (déspécialisation)
  • Managing disputes: eviction compensation, rent challenges, termination notices
  • Providing tax advice (VAT on rents, treatment of compensation, business transfers)

The Short-Term Lease (Bail Dérogatoire)

Flexibility and caution for temporary needs

1. What is it?

The short-term lease (bail dérogatoire), also known as a temporary lease, allows premises to be rented without applying the standard commercial lease regime. It is concluded for a maximum duration of 3 years (36 months) and does not grant any renewal rights.

2. Who is concerned?

  • Entrepreneurs wishing to test a business activity
  • Retailers operating temporary outlets (pop-up stores, seasonal corners)
  • Property owners seeking rental without long-term commitment

3. Why is it important?

  • Flexibility: limited-term commitment
  • Financial security: no risk of eviction compensation
  • Caution: if the tenant remains after 3 years, the lease is automatically reclassified as a commercial lease
  • Requirement: an inventory must be conducted upon entry and exit

4. What we do for you

  • Drafting clear and secure short-term leases
  • Tailoring clauses to avoid reclassification risks
  • Strategic advice: selecting the appropriate lease type for the project
  • Representation in case of disputes or reclassification into a commercial lease

The Common Law Lease

Contractual freedom outside commercial activity

1. What is it?

The common law lease is governed by the Civil Code (Articles 1713 et seq.). It applies where no specific regime is required, particularly outside commercial or craft activities.

2. Who is concerned?

  • Liberal professions (lawyers, doctors, accountants, architects, etc.)
  • Associations and non-profit organizations
  • Landlords renting premises for non-commercial purposes

3. Why is it important?

  • Contractual flexibility: duration, rent, and charges freely determined
  • Less protection for the tenant: no renewal rights or eviction compensation
  • Suitable for specific situations, but requires careful drafting

4. What we do for you

  • Drafting tailored leases adapted to your activity
  • Reviewing and securing sensitive clauses (duration, charges, termination)
  • Advising on ways to limit risks due to the lack of statutory tenant protections
  • Defending your interests in case of disputes

The Precarious Lease

A strictly regulated temporary occupation

1. What is it?

The precarious lease is an exceptional form of rental that allows temporary occupation of premises while awaiting a specific event (e.g., demolition or sale). It has no autonomous legal framework and is recognized only through case law.

2. Who is concerned?

  • Property owners seeking short-term rentals
  • Businesses awaiting relocation or winding down activities
  • Temporary projects requiring transitional occupation

3. Why is it important?

  • Flexibility: allows occupation without long-term commitment
  • Caution: high risk of reclassification as a commercial lease if genuine precariousness is not proven
  • Must remain an exceptional and strictly regulated solution

4. What we do for you

  • Verifying the validity of the claimed precarious circumstances
  • Drafting secure agreements to minimize risks
  • Advising on safer alternatives (particularly short-term leases)
  • Representing you in case of disputes or reclassification

FAQ

A commercial lease is entered into for a minimum duration of 9 years (Art. L.145-4 Commercial Code). The tenant may terminate every 3 years, hence the term “3-6-9 lease.”

Yes, but in that case the landlord must pay the tenant eviction compensation equal to the value of the business lost. Refusal without compensation is only possible in strictly defined cases (e.g., serious misconduct by the tenant, unsanitary building).

Rent is subject to revision every 3 years (triennial review). It is capped by the legal index (ILC or ILAT), except in exceptional circumstances (e.g., significant changes in local commercial conditions). An annual indexation may also be included in the lease (sliding scale clause).

Since the Pinel Law of 2014, certain charges and works are the exclusive responsibility of the landlord (e.g., major repairs under Art. 606 Civil Code, property tax). The lease must include a detailed inventory of charges passed on to the tenant.

A short-term (dérogatory) lease is limited to a maximum of 3 years and does not grant any renewal rights. Beyond this period, the tenant automatically falls under the commercial lease regime. A commercial lease, by contrast, grants a right of renewal and entitles the tenant to eviction compensation if the landlord refuses renewal.

The commercial lease continues: the purchaser of the premises is bound by the same conditions (principle of lease continuity). In addition, under the Pinel Law, the tenant benefits from a right of first refusal in the event of a sale of the premises.

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