Commercial Lease

Key Points About Commercial Leases

The 3-6-9 Term. The lease is entered into for a minimum of 9 years, but the tenant may terminate it at the end of each three-year period (every 3 years), provided they give 6 months' notice via a bailiff's writ or registered letter. The landlord, on the other hand, generally cannot terminate the lease before the 9-year term expires, except for very limited reasons.

The right to renewal. At the end of the 9-year term, the tenant has the right to renew the lease. If the landlord refuses, they must pay an eviction indemnity, which is often very high, unless there is a serious reason. This provides strong protection for the tenant.

Rent adjustment. Rent may be adjusted every 3 years based on the Commercial Rent Index (ILC) or the Tertiary Sector Rent Index (ILAT). Note: Some leases include sliding-scale clauses that allow for automatic annual adjustments.

Utilities and repairs.Since the Pinel Law (2014), the division of expenses between landlord and tenant has been more clearly defined. In practice, the tenant often covers routine maintenance, condominium fees, and property tax (if the lease provides for it). Major repairs (Article 606 of the Civil Code) remain the landlord’s responsibility.

Assignment and subletting. The lease may be freely assigned in the event of a sale of the business. However, subletting is prohibited by default unless expressly authorized by the landlord: a crucial point for businesses considering sharing their premises.

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The Limits of the Commercial Lease in 2026

The commercial lease was designed to protect merchants and their businesses. But for many modern businesses (startups, scale-ups, digital services firms, international subsidiaries), its inflexibility poses a problem:

The minimum 3-year commitment is a barrier for companies with rapidly changing headcounts. Hiring 20 people in 6 months or losing 15 after a pivot: the lease doesn’t adapt.

Hidden costs add up: security deposit (3 to 6 months’ rent), key money, fit-out work paid for by the tenant, and restoration at the end of the lease. The true cost of a lease far exceeds the face value of the rent.

Subletting is virtually impossible without the landlord’s consent, which means that unused square footage remains a fixed cost with no easy way to monetize it under a standard lease.

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Alternatives to Consider

If a commercial lease doesn’t fit your situation, several options are available:

• The professional lease (6 years, more flexible) for independent professionals.
• The short-term lease (max 3 years) to test a location without a long-term commitment.
• The managed/turnkey office, where you occupy a space through a service agreement, without signing a lease. This is the model offered by Sora: no 3-6-9 commitment, no 6-month security deposit, no restoration required. And for companies already under a lease with vacant spaces, Sora allows them to utilize those spaces without needing the landlord’s permission.