Rent for a renewed commercial lease

Article L145-33 of the French Commercial Code sets out the principles for determining the rent applicable to the renewal or revision of commercial leases. This article is crucial to the balance between the rights of the lessor and lessee in a commercial lease.

Essential elements of the rent for a renewed lease :

1. Principle of the rental value of the renewed lease:

The amount of rent for a renewed or revised lease must be set according to the rental value of the property. The rental value is therefore the primary basis for calculation, and not previous rents or other criteria.

2. Criteria for determining rental value :

– Characteristics of the premises: This includes surface area, general condition, configuration, and any specific features of the property.

– Use of the premises: The use to which the premises are put, as indicated in the lease (retail, office, etc.), influences the rental value.

– The respective obligations of the parties: The contractual obligations of the lessor and lessee (e.g., charges assumed by each party) are taken into account.

– Local commercial factors: These include the commercial environment, footfall, local competition, etc., which can affect the profitability of a commercial activity on the premises.

– Prices currently charged in the vicinity: The rent must be consistent with those charged for similar premises in the same sector.

3.regulation by decree :

A decree by the Conseil d’Etat is responsible for specifying these elements to ensure uniform and fair application of these criteria in determining rents.

Practical importance

This article is essential for real estate law professionals, particularly during negotiations or disputes concerning rent renewal or review. It imposes a strict methodology designed to balance the interests of lessors and lessees, while taking into account local economic realities.

In the event of disagreement between the parties over the setting of a new rent, this framework enables judges or experts to determine an amount in line with market reality and the specific characteristics of the premises in question.

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