Commercial real estate : All about the commercial lease

The commercial lease benefits from a particular status, established by decree in September 1953. It has certain advantages. The contract concerning the commercial lease has very specific characteristics and its transfer is also done following an adapted procedure.

The characteristics of the commercial lease

The commercial lease contract concerns only business real estate, which consists of offices, commercial premises, a warehouse, a factory, a shed or a business premises. It signs the union between the owner and the tenant who occupies his premises in the framework of a craft, industrial or commercial activity. It is essential to rent a place. It is the nature of the lease itself that determines its commercial character. Therefore, the tenant must be able to prove that he/she is registered in the trade register, if he/she is a craftsman, or in the trade and company register, if he/she is an industrialist or a merchant. When the lease is granted, do not hesitate to make an asbestos diagnosis.

This registration is mandatory at the time of signing the commercial lease, but to benefit from the protection of the commercial lease status, it will be required. For example, if the tenant wants to benefit from the right to renew the lease, a benefit of this lease, he must be registered at the time of the lease.

The lease must be assigned administratively to a commercial or craft activity. The conclusion of the lease in writing proves its existence. It is possible to conclude an all trade lease, allowing to exercise all the activities. A statement of technological and natural risks is given. The contract includes the amount and distribution of charges, fees, taxes and duties between the tenant and the lessor.

Commercial lease, find out more!

Before signing a commercial lease, carefully review all the terms

Assignment of a commercial lease

The transfer of a commercial lease is the contract that allows the tenant, also called the transferor, to transfer the lease to another entity. Of course, he transfers it with the obligations and rights attached to it. In principle, it is very rare that this operation is not authorized by the lease; there may be clauses that limit the possibilities.

The intervention of the lessor may be necessary. He is then invited to give his agreement, and sometimes he participates in the drafting of the contract for the transfer of the commercial lease. There is a clause that subjects the transfer to an indispensable authorization of the lessor, which must be established in writing. The lessor, in some cases if it is written into the initial contract, must be present during the transfer of the lease in Nice. The latter is then informed of the change of owner of the lease.

Sometimes the lease stipulates that it can only be transferred if the commercial activity is the same. If the lessor is not notified of the change, the assignment automatically lapses and may result in the termination of the commercial lease or its renewal. This is no longer valid if the landlord has notified his agreement to the transfer by deed. Often, a clause authorizes the tenant to transfer his right to the lease without needing the authorization of the landlord.

If you wish to have more information, we advise you to read this article on the obligations between the landlord and the tenant to have a good rental relationship.