Commercial or professional lease?
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When starting up or expanding a business, choosing the right lease for your premises is a key step that directly influences the stability and development of your business.
Should you opt for a commercial lease or a professional lease? Each meets specific needs and concerns specific types of business.
the commercial lease
Commercial leases are intended for companies engaged in commercial, industrial or craft activities. It is governed by strict rules that protect both lessee and lessor. This type of contract is concluded for a minimum term of nine years, enabling the company to secure its location for the long term. This stability is a major asset for businesses needing a fixed location to attract and retain customers. Despite this relatively long term, tenants have the option of terminating their lease every three years, giving them a degree of flexibility while maintaining a structured framework.
One of the main advantages of a commercial lease is the right to renew, guaranteeing tenants the possibility of extending their contract on expiry, except in certain exceptional cases. It also allows for sub-letting or assignment under certain conditions, giving businesses additional room for manoeuvre. Rent is generally reviewed every three years, based on a specific index, to ensure that it reflects market realities, although this review can sometimes lead to significant increases, particularly during periods of inflation.
professional leases
The professional lease, on the other hand, is intended for liberal professions such as doctors, lawyers, architects or consultants. It is designed for non-commercial activities requiring premises for the exercise of the profession, but without the specific requirements associated with commerce.
Unlike a commercial lease, the lease term is generally six years, providing greater flexibility for professionals whose business may evolve rapidly. This flexibility is reinforced by the possibility of terminating the lease at any time, provided six months' notice is given. Another advantage of a professional lease is its more stable financial framework, since the rent is not systematically subject to a three-yearly review. However, it can be readjusted if a specific clause so authorizes, although this situation is less frequent and less restrictive than for a commercial lease.
Less legally regulated, this type of lease nevertheless offers fewer guarantees for the tenant, who does not benefit from an automatic right to renewal or the same protections in the event of a dispute with the lessor.
The choice between a commercial and a professional lease depends on the activity carried out and the specific needs of the business. Commercial, industrial or craft businesses will prefer a commercial lease for its legal protection and stability, while the liberal professions will opt for the more flexible professional lease. Before signing, it's essential to anticipate your objectives and check that the contract matches your strategy. The assistance of a legal expert is recommended to secure your commitment.
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