The office lease: our guide to everything you need to know

Commercial lease and office rental: what you need to know

SeDomicilier invites you to find out more about renting an office and drawing up a commercial lease.

What is a commercial lease?

Leasing an office is governed by commercial leasing legislation. The legal provisions are set out in articles L145-1 et seq. of the French Commercial Code.

A commercial lease is a rental contract. It concerns commercial premises in which a commercial, craft or industrial activity is carried out. When a commercial lease is signed, the landlord and tenant are committed to each other under the terms of the commercial lease statute.

The Commercial Leases Act applies to all commercial leases. It guarantees the tenant the following advantages:

• lease renewal at the end of nine years ;
• payment of eviction compensation in the event of non-renewal ;
• rent review every three years, etc.

The status of commercial lease applies on the basis of the following four conditions:

• signing a lease contract ;
• the lease contract concerns a building or premises used for commercial, industrial or craft purposes;
• operation of a business on the premises ;
• registration of the tenant with the Registre du Commerce et des Sociétés (RCS) or the Registre National des Entreprises (RNE).

Legal framework for commercial leases

It's possible to rent an office by entering into a verbal commercial lease. However, it is advisable to put this agreement in writing, in the form of a conventional deed. This way, in the event of a dispute, both parties have a solid basis in the lease agreement.

The minimum term of a commercial lease is nine years. Commercial leases can be terminated every three years. The tenant may terminate the lease after 3, 6 or 9 years. The lessee's right to terminate the lease offers no compensation to the lessor.

On this three-year basis, the rent may be revised at the lessor's initiative. The latter must refer to the reference index determined when the commercial lease was signed.

Is it possible to rent an office without a commercial lease?

It's a good idea to draw up a commercial lease when you want to rent an office.

Alternatives to the classic commercial lease

In some cases, the status of commercial leases may represent an obstacle. In such cases, an alternative lease may be possible:

• The seasonal commercial lease is ideal for seasonal commercial activities. It is a short-term lease.
• The lease derogating from the status of commercial leases. It is also known as a precarious lease.
• The professional lease for the liberal professions offers a flexible solution for regulated or unregulated liberal professionals.
• The mixed lease includes both professional and personal use. It provides for the use of the premises for residential purposes.

The civil lease for associations under the 1901 law: an exception for office rentals

Associations governed by the 1901 law can rent office space under a civil lease. This is governed by articles 1713 et seq. of the French Civil Code.

A civil lease is a lease governed by common law. Each party has complete freedom to negotiate the terms of the lease:

• lease term ;
• the rent ;
• early termination terms ;
• renewal conditions ;
• tacit renewal conditions, etc.

Freedom of contract governs relations between lessor and lessee. The civil lease solution makes it possible to derogate from the statutes governing leases.

Commercial domiciliation: the alternative to a commercial lease

Commercial domiciliation is an excellent alternative to the constraints inherent in a commercial lease.

What is commercial domiciliation?

The commercial domiciliation is offered by business centers. SeDomicilier is a domiciliation company offering tailor-made services to individual entrepreneurs and company managers to improve their day-to-day administration:

• Mail management: reception, scanning and forwarding.
• Telephone switchboard and physical reception.
• Computer equipment: printers, video projectors, Internet connection, etc.
• Private serviced offices or coworking spaces.
• Legal advice, accounting advice, etc.

You can also set up a virtual office for remote management of your administrative data.

What are the advantages of commercial domiciliation?

Renting an office as a business address has several advantages for entrepreneurs:

• Reduce the amount of local business tax (cotisation foncière des entreprises - CFE) thanks to strategic domiciliation to optimize the cost of this local tax.
• Develop your company's brand image through business centers located in prestigious areas of Paris and major French cities.
• Flexibility in the services offered and in the duration of the contract signed with the domiciliation company: minimum three-month commitment, with price advantages for a one-year commitment.

There are several types of commercial lease for office space. Its nature varies according to your project and the location you have chosen. A commercial lease is governed by the law, and presents a number of constraints for the entrepreneur. An efficient and flexible alternative is offered by domiciliation companies.