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Real Estate · Sub-expertise

Commercial leases.

The commercial lease is a structuring contract in the life of a business: long term, right to renewal, eviction indemnity, reciprocal obligations. Its drafting and management have a lasting impact on operational flexibility and on the value of the business. We support landlords and tenants at every stage: drafting, renewal, rent review, assignment, litigation.

→ What we cover

Our scope of intervention.

Lease drafting

Bespoke drafting: term, rent, indexation, recoverable charges and taxes, works, specific clauses (permitted use, exclusivity, accession).

Renewal

Renewal procedure on expiry: notice with offer, renewal request, negotiation of the new rent, management of any decapping.

Triennial review

Request for a triennial rent review based on the applicable indices, amicable negotiation, litigation before the commercial rent judge where appropriate.

Lease assignment

Assignment of the lease alone or together with the business: formalisation, notification to the landlord, management of any joint-guarantee clause.

Works & permitted use

Framing the tenant's works (authorisations, accession), change of permitted use, partial or full de-specialisation.

Litigation

Defence in disputes: arrears, breaches of obligations, notices to quit, refusal of renewal, eviction indemnity.

→ Our approach

A proven methodology.

01

Scoping

Analysis of the situation (new lease, renewal, assignment, litigation), of the objectives and of the balance of power between landlord and tenant.

02

Negotiation & drafting

Negotiation of the key clauses, drafting of the lease or amendment, securing the respective commitments.

03

Formalisation

Signing of the lease (often by private deed or notarial deed), any registration, publicity formalities where applicable.

04

Life of the lease

Day-to-day advice: reviews, amendments, handling of incidents, anticipation of renewal, litigation.

→ Who we help

Typical engagements.

Drafting a commercial lease for a retail brand

Bespoke lease for a national brand setting up in a new site: 9-year firm term, stepped rent, works authorisations, brand exclusivity.

Negotiating the renewal

Renewal of an expiring lease with rent negotiation, management of decapping, articulation with any works to be taken on.

Lease assignment within a business sale

Assignment of the lease as part of the sale of the business: formalisation, notification to the landlord, management of any joint-guarantee clause.

Arrears litigation

Action for payment and termination by the landlord faced with repeated arrears, or defence of the tenant disputing the grounds and negotiating an instalment plan.

→ Q&A

Frequently asked questions.

9 years minimum (3-6-9 lease), with the tenant's right to terminate every three years (unless a valid contrary clause applies). Longer leases are possible. On expiry, the tenant benefits from a right to renewal or, failing that, an eviction indemnity.

On renewal, generally after 12 years on the premises or in the event of a material change in the local commercial factors, or a change in the permitted use of the premises. The rent is then fixed at the rental value, often higher than the indexed rent.

Assignment of the lease is free where the business is sold (Article L. 145-16 of the Commercial Code): any clause prohibiting it would be void. Certain formalities must be observed (notification to the landlord, any required approval). Assignment of the leasehold right alone requires the landlord's consent.

Where the landlord refuses renewal without serious and legitimate grounds, it must compensate the tenant for the loss suffered: value of the business or replacement indemnity, removal costs, additional indemnities. The amount can be very substantial.

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