Commercial Leases

Drafting a commercial lease is not limited to setting a rent and a term. It requires precisely framing the permitted use of the premises, the authorised activity, the charges, the works, the guarantees, the termination options, the conditions for assignment or sub-letting, as well as the renewal arrangements.

The firm works to build a lease consistent with the tenant’s business or the landlord’s asset strategy, identifying the sensitive clauses and the useful room for negotiation.

In particular, we assist with:

• analysing the project, the intended activity and the situation of the building;
• drafting or reviewing the lease and its schedules;
• negotiating the sensitive clauses: permitted use, rent, indexation, charges, works, guarantees, assignment, sub-letting;
• securing overall consistency before signature.

The commercial rent depends on many factors: the characteristics of the premises, the contractual use, the commercial environment, the rental value, the transferred charges, indexation, capping or de-capping.

The firm assists its clients with the initial setting of the rent, its review, its renewal or its challenge, in order to protect their economic and legal interests.

In particular, we assist with:

• analysing the lease, the rental elements and the rent clauses;
• defining a strategy according to the objective pursued: increase, limitation, challenge or negotiated agreement;
• drafting review requests, responses, amendments or submissions;
• supporting negotiations or, where necessary, the judicial setting of the rent.

The ending of a commercial lease is subject to strict formal requirements. Notice to quit, refusal of renewal, termination during the lease, forfeiture clause or judicial rescission: each mechanism has its own conditions and can have significant economic consequences.

The firm works to characterise the situation, choose the appropriate legal basis, secure the timeline and draft the documents required for a controlled exit from the lease.

In particular, we assist with:

• analysing the lease, its amendments and the history of its performance;
• checking the necessary time limits, forms and notifications;
• assessing the risks relating to eviction compensation, rent, occupation or the return of the premises;
• drafting notices to quit, formal demands, notifications, deeds of termination or settlement agreements.

Difficulties in performing a commercial lease can arise from many issues: unpaid rent, delivery of the premises, allocation of charges and works, damage, interference with quiet enjoyment, insured events, change of activity or failure to comply with maintenance obligations.

The firm assists landlords and tenants in preventing, negotiating or litigating these difficulties, taking care to place each obligation back within the framework of the lease and the applicable rules.

In particular, we assist with:

• auditing the lease and the respective obligations of the parties;
• identifying unbalanced, imprecise or dispute-prone clauses;
• formalising claims, challenges or formal demands;
• preparing a negotiation or a liability claim in litigation.

Eviction compensation is a central issue when the landlord refuses to renew the commercial lease. It is intended to compensate the evicted tenant for the loss caused by the loss of the right to renewal, in particular the value of the business, relocation costs or the consequences of transferring the activity.

The firm assists landlords and tenants in analysing the right to renewal, the validity of the notice, the possible exceptions, the assessment of the compensation and the negotiation or challenge of its amount.

In particular, we assist with:

• analysing the lease, previous renewals and the notifications served;
• checking the right to renewal and the exceptions that may be raised;
• defining a strategy of negotiation, challenge or controlled exit;
• drafting the necessary documents and, where needed, supporting the expert appraisal or judicial determination of the compensation.