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French Commercial Leases - a brief overview

In French - singular « Bail Commercial » or plural « Baux Commerciaux »

Commercial leases are highly regulated and, to a considerable degree, standardised by French statute.

Whilst this list may not be held to be exhaustive, the following points might be of particular comparative interest to practitioners used to the quite different provisions of many Common Law systems.

A standard 9-year term for French Commercial Leases is fixed by statute.

There are breakpoints at the end of each three-year period (3-6-9), but only in favour of the tenant.

There is a statutory right of renewal for the sitting tenant.

The method and timing of rental index linkage is provided for by law.

The breakdown of liability for building and management charges, i.e. over and above the rental amount, may be settled contractually between the parties.

The termination of the lease is subject to highly constraining procedural requirements, which, if not complied with, tend to penalise the landlord.

Compensation is nevertheless payable to the tenant by the landlord at the end of the term of the lease.

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  Three yearly rent review
  Notice to quit with offer of

  Lease renewal procedure
  Conditions of renewed lease
  Notice to quit without offer of renewal
  Examples of current Paris