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A text adopted after a long period of time, immediate effects
Passed in April and having entered into force on May 26, 2026, Law No. 2026-403 on the "Simplification of Economic Life" amends several commercial lease mechanisms, including in respect for leases already in progress.
The legislator's objective : to rebalance the lessor-lessee relationship and to modernise the statute in line with the 2014 Pinel Act. While several provisions are favorable to tenants, they also alter management practices on the landlord side and invite the entire market to reconsider the way in which an office premises are occupied.
The 4 key measures to remember
1. Monthly rent becomes a right
Since May 28, 2026, any tenant of commercial or commercial premises or commercial-services premises may require the monthly payment of their rent, even if the lease provides for quarterly payment. This rule applies to leases in progress. The lessor cannot object to it, provided that the lessee is up to date with its rents and charges.
Concretely, this means less cash in advance for the lessee, but more fragmented flows and heavier management monitoring for the lessor. The amount remains the same; it is the pace that changes and, of course, the exposure to the risk of non-payment.
Be careful though: for office leases for exclusive use, there is doubt. Contrary to the right of preference (which clearly excludes them), monthly rent does not say anything about them. Not to include them, not to exclude them. Only case law is likely to resolve the issue.
On the other hand, one thing is certain: premises for civil, professional (liberal), non-profit, associative or administrative use remain excluded from the right to monthly payment.
2. Rental guarantees
This is undoubtedly the most impacting measure. For any lease concluded or renewed on or after May 26, 2026, the security deposit and the guarantees required by the lessor can no longer exceed the amount of one quarter's rent (i.e. the equivalent of three months).
However, the capping of guarantees raises the same uncertainty as the lessee's right to monthly rent payments: as the ceiling applies to the same category of premises, it is currently unknown whether it applies to premises for exclusive office use.
Add to this a supervised return period (3 months after handing over the keys, 6 months for other guarantees) and an automatic transfer to the purchaser in the event of a sale: the lessor's security margins are significantly tightened.
In the event of the sale of the building, the bank guarantees and first-demand guarantees (GAPD) in place automatically lapse, and are no longer valid. This is a real subject to anticipate in any transfer transaction, since the former lessor must return the corresponding documents and release the commitments within 6 months.
The new owner who wants to be covered will have to ask the tenant to put new ones in place, and the tenant will therefore have to start the procedures again with its bank.
3. Validated indexing clauses
Good news for budgetary visibility: the legislator validates the possibility of regulating the variation of the ILC (Commercial Rent Index) both up and down. In times of high volatility, this mechanism provides greater predictability for both parties.
However, be careful: the clause must be symmetric (same capping proportions in both directions), which limits its usefulness as an asymmetric negotiation tool.
4. Clarified right of preference for offices
The right of preference (or pre-emption) gives the tenant priority to buy the premises it occupies when the owner decides to sell them : before selling them to a third party, the lessor must first offer the sale to his tenant, under the same conditions.
However, premises for the exclusive use of offices and warehouses are now expressly excluded from the tenant's right of preference in the event of the sale of the premises. This secures disposal transactions for investors, but adds a layer of complexity for mixed assets, where the legal qualification of premises becomes an issue in its own right.
In summary: strengthened rights for lessees, clearer rules on certain mechanisms, but also rental management that is becoming more complex for lessors. The lease is now managed over time.
What the reform is changing in practice
Commercial leases remain a solid and structuring tool for many companies: especially those that are part of a long-term logic on a site.
On the other hand, it confirms a fundamental trend: leases now require active management, constant legal monitoring, and the ability to adapt quickly when the rules change, including during the lease term. For lessors, the reduction of guarantees and monthly payments require reinforced operational monitoring. For lessees, the 3-6-9 framework remains a significant commitment, especially as the real costs (layout, charges, rehabilitation) are added to the face rent.
It is in this context that more and more companies are exploring alternatives that have emerged in recent years: models that, in the light of this reform, are gaining even more relevance.
Service agreement: a booming alternative
In recent years, an alternative model has made its way into the tertiary real estate landscape: the service agreement. The principle is simple: you occupy an equipped and operated office, under a service contract, without going through a commercial lease. No commercial lease status, no 3-6-9, no security deposit to negotiate. You pay for an all-inclusive service and focus on your business.
Several operators have positioned themselves in this niche in recent years, by intervening directly in the spaces of real estate partners, without lease assignment or subletting, to offer turnkey offices with dedicated operational support, without giving the occupant the private and exclusive enjoyment characteristic of a rental.
This type of solution existed before the reform. But with the new constraints introduced by the 2026 law, the interest in going beyond the traditional lease framework takes on a new dimension for companies that value flexibility and simplicity.
What this reform tells us about the future of the office
The 2026 Simplification Law is part of a wider movement to modernise the tertiary market. Commercial leases remain a pillar of French business law and for many companies, it remains the right choice, especially when stability and geographic location are strategic priorities.
But the market has changed. With remote working, shorter business cycles and fluctuating space requirements, new occupancy models have emerged: coworking, flex office, and the provision of real estate services. These approaches, long perceived as marginal, are establishing themselves permanently in the landscape, and each regulatory evolution of the classic lease reinforces their attractiveness by contrast.
The observation is shared by many market players: businesses of all sizes choose to provide services not against lease, but because this model better corresponds to their operational reality.
Lease or service agreement: how to choose?
The commercial lease will always be suitable for businesses looking for a long-term foothold, very specific arrangements, or who wish to capitalize on commercial property. The 2026 reform also reinforces certain rights of the lessee, which is good news for those who are embarking on this path.
The service agreement on the other hand, meets other needs: a rapid increase in load, an occupancy without heavy commitments, simple and predictable billing. In this model, the topics of monthly payments, security deposits or indexing clauses simply do not arise: the service contract operates on a different logic.
The key is choosing the model that fits your stage of development and strategy. And to know that the options have expanded considerably in recent years.
