You are a commercial lease tenant

Your lease is approaching its expiry date and you are unsure how to secure renewal. Your landlord refuses to renew and demands that you vacate the premises. An indexation clause is causing your rent to spiral. You want to sell your business but a clause in the lease prohibits it.

The French commercial lease regime (statut des baux commerciaux, Articles L.145-1 et seq. of the Commercial Code) protects tenants operating a business (fonds de commerce) or a craft activity. This is the foundation of what French law calls propriete commerciale – the tenant’s right to lease renewal, and failing that, to an eviction indemnity. But this right only exists if the correct procedures and deadlines are observed. An improperly served notice, a late renewal request or an irregular lease assignment can result in the loss of established rights.

How we assist you

  • Review and negotiation of your commercial lease before signing (permitted use clauses, service charges, works, joint and several liability)
  • Renewal of the commercial lease and rent determination proceedings before the rent review judge (juge des loyers)
  • Challenging a refusal to renew and calculating the eviction indemnity (indemnite d’eviction)
  • Triennial termination (notice in the form and within the time limits of Article L.145-9 of the Commercial Code)
  • Assignment of the leasehold right or the business as a going concern, including negotiation with the landlord
  • Defence against enforcement of a forfeiture clause (clause resolutoire) for unpaid rent
  • Challenging a rent review or abusive rent de-capping (deplafonnement)
  • The fate of the lease in insolvency proceedings (safeguard, reorganisation, liquidation)

Legal focus – The eviction indemnity (Article L.145-14 of the Commercial Code)

A landlord who refuses to renew a commercial lease must, unless there is serious and legitimate cause, pay the tenant an eviction indemnity ‘equal to the loss caused by the failure to renew’. This indemnity comprises the market value of the business, removal and relocation costs, and the commercial disruption suffered. The tenant remains in occupation until the indemnity is actually paid. This is the cornerstone of the French concept of propriete commerciale and one of the most significant issues in commercial lease law.

You are a commercial property landlord

Your tenant has stopped paying rent. You want to recover your premises at the end of the lease. A tenant has sublet without your consent, or is carrying on an activity outside the permitted use. You are considering selling your commercial property and must comply with the tenant’s statutory right of first refusal introduced by the Pinel Act.

French commercial lease law imposes strict obligations on landlords, from the allocation of service charges (mandatory schedule introduced by the Pinel Act) to the service of notice. An irregular notice is void. A refusal to renew without legitimate grounds exposes you to an eviction indemnity that is often substantial. Conversely, when a tenant is in default, enforcement of the forfeiture clause follows a precise procedure: formal demand for payment, one-month notice period, and judicial confirmation. The conditions are strictly scrutinised by the courts.

How we assist you

  • Drafting bespoke commercial leases, short-term derogatory leases (baux derogatoires) and temporary occupation agreements
  • Service of notice to quit, with or without an offer of renewal
  • Enforcement of the forfeiture clause and eviction of a defaulting tenant
  • Recovery of unpaid rent
  • Rent determination for the renewed lease and de-capping proceedings before the rent review judge
  • Triennial rent review (ILC or ILAT indices, market rental value)
  • Disputes relating to service charges, works and the landlord’s obligation to provide premises fit for purpose
  • Tenancy audit prior to acquisition of a commercial property or building

The lifecycle of a French commercial lease (3-6-9 lease)

1

Execution of the lease

2

1st triennial break

3

2nd triennial break

4

Notice or renewal

5

Rent determination

6

Eviction indemnity

Our commercial lease services

Our firm acts at every stage of a commercial lease, both in an advisory and a contentious capacity. Our practice covers the full scope of the French commercial lease regime and its extensions into commercial law and insolvency law, when a tenant is subject to safeguard, reorganisation or liquidation proceedings.

We act for traders and craftsmen as well as for property-owning companies, real estate funds and property investors. This dual practice – tenant side and landlord side – allows us to anticipate the opposing party’s arguments and adapt our legal strategy accordingly.

Advisory and drafting

  • Drafting and negotiating commercial leases, short-term derogatory leases and temporary occupation agreements
  • Pinel Act compliance audit (service charge allocation, inventory of fixtures, schedule of charges)
  • Assistance with the sale of a going concern and assignment of the lease
  • Partial or full change of permitted use (despecialisation)
  • Review of the lease and its sensitive clauses (indexation, forfeiture, joint and several liability)

Litigation

  • Rent determination proceedings before the commercial rent review judge (review, de-capping)
  • Challenging notice to quit, refusal to renew, eviction indemnity
  • Forfeiture clause, lease termination and eviction
  • Disputes relating to service charges, works and the obligation to provide premises fit for purpose
  • The fate of the commercial lease in insolvency proceedings
  • Representation before the civil court (tribunal judiciaire) and the court of appeal

Frequently asked questions

How much does a commercial lease lawyer cost in France?

Fees depend on the nature of the engagement. For advisory work (drafting or reviewing a lease), we offer fixed fees. For litigation, a fee agreement is drawn up at the first meeting, with an amount proportionate to the value at stake. Contact us for a quote.

When should you consult a lawyer about your commercial lease?

Ideally before signing: a French commercial lease commits you for a minimum of 9 years, and its clauses determine your rights throughout that period. During the lease, seek advice as soon as a dispute emerges (unpaid rent, contested charges, works). At least six months before expiry to prepare renewal or notice.

How can a commercial lease be terminated early under French law?

The tenant may give notice at each triennial break (every 3 years), with 6 months’ notice by bailiff’s deed or registered letter with acknowledgement of receipt. Exceptions exist for leases exceeding 9 years, single-purpose premises or offices. The landlord may only terminate at the end of the lease term, except in limited statutory circumstances or upon enforcement of a forfeiture clause.

What if my landlord refuses to renew the lease?

If the refusal is not based on serious and legitimate cause, the landlord owes you an eviction indemnity. You remain in occupation until it is paid. Our firm assists you in assessing the indemnity, negotiating with the landlord, and bringing proceedings before the court if necessary.

My lease is approaching its expiry – what are the steps?

Six months before expiry, the tenant may request renewal by bailiff’s deed. The landlord may serve notice with or without an offer of renewal. If neither party takes action, the lease continues by tacit extension (tacite prolongation) beyond its contractual term. Strict compliance with the required forms and deadlines is essential to preserve the right to renewal and the eviction indemnity.

What is the difference between a commercial lease and a professional lease in France?

A commercial lease (bail commercial) is governed by the commercial lease provisions of the Commercial Code and applies to traders and craftsmen. It runs for a minimum of 9 years with a right to renewal. A professional lease (bail professionnel), governed by Article 57 A of the Act of 23 December 1986, applies to liberal professions. Its minimum duration is 6 years and it carries no right to renewal or eviction indemnity.

Do you act in Marseille and throughout France?

Our firm is based in Marseille, but we act throughout France before all courts with jurisdiction over commercial lease matters (civil court, commercial rent review judge, court of appeal).