Definition
A service agreement in real estate is a contractual model in which a company makes equipped and managed workspaces available to another company, not via a lease or a sublease, but via a service agreement. The occupant is not renting walls, they are buying a service: an operational office with everything needed to work.
This is a fundamental legal distinction. In a lease (or a sublease), there is a transfer of enjoyment of a real estate asset, with the rights and obligations that entail (right to renewal, commercial property rights, landlord authorisation). In a service contract, there is no transfer of enjoyment: the service provider delivers a service, and the occupant benefits from it. Legally, it is a classic commercial contract, not a real estate contract.
Service agreement vs subletting: the concrete differences
Confusion between the two models is common, even among real estate professionals. Here is what distinguishes them point by point.
Landlord authorisation. Subletting requires the written consent of the building owner (Article L145-31 of the French Commercial Code). Without this consent, subletting is prohibited, and many leases explicitly exclude it. A service agreement requires no landlord authorisation, since there is no transfer of lease enjoyment. However, Sora recommends informing the landlord as a matter of transparency.
Occupant rights. In a sublease, the sub-tenant acquires rights over the premises: the right to remain for the duration of the contract, and even the right to renewal in certain cases. In a service agreement, the beneficiary acquires no real estate rights, they benefit from a service, terminable under the contract's conditions. The Host retains full control of their spaces.
Duration and flexibility. Subletting is often aligned with the main lease, meaning long and rigid durations. A service contract offers more contractual flexibility. At Sora, the commitment starts from 12 months.
Scope. Subletting transfers a bare space (walls and floors). A service agreement includes the space AND the associated services: furniture, cleaning, maintenance, reception, Wi-Fi, request management. It is a complete product, not just square metres.
Tax treatment. Subletting follows the tax regime for property income or BIC depending on the structure. A service contract is subject to VAT by default (20%), which allows the provider to recover VAT on their investments and the beneficiary to deduct it. A real economic advantage for VAT-registered companies.
The legal framework in France
The real estate service contract is not a legal grey area, it is a commercial contract governed by the French Civil Code and Commercial Code.
The criteria that qualify a service contract (vs a disguised sublease):
The occupant does not have exclusive and permanent enjoyment of the premises. They benefit from access within the framework of a service, not an autonomous right of occupation. The service provider retains operational control of the space: they handle cleaning, maintenance, reception, and daily management. The contract covers a bundle of services (space + equipment + operation) and not merely the provision of walls. The price is a service flat fee, not a rent.
The risk of reclassification. If a service contract is in reality a disguised lease (the occupant has exclusive enjoyment, the service provider does not intervene, the price resembles a rent), a judge may reclassify it as a commercial lease, with all the legal consequences (right to renewal, commercial property rights, nullity of subletting without authorisation). This is why the operational reality must match the contract: the service provider must actually manage the space, not simply hand over the keys.
How Sora secures this framework. The Sora model is based on active and genuine operation of spaces: dedicated Workplace Manager, ticketing system, coordination of service providers, management of reception and maintenance. This is not a legal veneer, it is a complete operational service that fully justifies the qualification as a service contract.
Why this model has established itself on the market
The demand for all-inclusive. Companies looking for offices no longer want to manage 15 different service providers (cleaning, maintenance, reception, IT...). They want a single point of contact and a predictable monthly flat fee. A service contract natively integrates this "office as a service" logic.
Security for the Host. The main tenant who makes their spaces available via a service contract transfers no rights. They can recover their offices with reasonable notice. In a sublease, the sub-tenant can invoke rights that considerably complicate the recovery of spaces.
Speed of implementation. No need to obtain landlord authorisation (a process that can take weeks or even months, with a risk of refusal). The service contract is negotiated and signed directly between the parties.
Limitations to be aware of
The model does not suit all surfaces. A 15 sqm office in the middle of an occupied open plan is difficult to operate as a service agreement. The ideal: spaces of at least 100 sqm with independent or semi-independent access, in a decent condition.
Want to add value to your spaces without the constraints of subletting? Discover how the service agreement works in practice via our contact page.
Related terms
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Operated office
A serviced office is a fully equipped, turnkey workspace that includes integrated services and outsourced management to maximize productivity.
Real Estate Operator
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Commercial Lease
Understanding Commercial Leases: Term, Obligations, Termination, and Implications for Tenant and Landlord Businesses.
