Diversify activities on leased premises

Article L145-48 of the French Commercial Code allows tenants to diversify their business activities within the leased premises, subject to certain specific conditions. Here are the main points to bear in mind:

1. The possibility of diversifying activities

A mandatory request from the tenant to the lessor

The tenant may request authorization to carry on one or more activities on the leased premises, other than those initially provided for in the lease. This request is based on :

– Economic conditions: This may include difficult economic circumstances or market developments requiring an adjustment of activities to maintain the company’s viability.

– Necessities of rational distribution organization: This refers to the need to reorganize or adapt the supply of goods and services in line with new market needs or the tenant’s business strategy.

2. Conditions for authorization

Authorization will only be granted if the new activities are compatible with :

– The purpose of the building or complex:

The type of building or its main use must not be compromised by the new activities.

– The character of the building:

The architectural, functional or even cultural characteristics of the building must be respected.

– Location of the building:

The immediate environment or neighborhood in which the building is located must be taken into account, in particular to ensure that new activities do not create an imbalance or nuisance in the neighborhood.

3. Restriction for commercial units:

A notable exception is provided for the first tenant of premises located in a commercial unit (i.e. a property complex with a commercial coherence defined by a construction program). This tenant may not exercise this option to diversify activities for the first nine years following occupancy. The purpose of this restriction is to preserve the commercial coherence and balance of the property complex for a decisive period.

To sum up

Article L145-48 of the French Commercial Code allows lessees to adapt their activities in line with economic and commercial developments, provided that these new activities are compatible with the leased property. However, tenants of first commercial units are subject to a nine-year restriction to guarantee the initial stability of the overall commercial project.

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