Three options at the end of a commercial lease
At the end of a 9-year commercial lease, the tenant can: request renewal (between 18 and 15 months before expiry), vacate the premises, or negotiate new terms. The landlord can accept, refuse with an eviction indemnity (1 to 3 years of rent), or propose different conditions. Unlike residential leases, a commercial lease does not renew automatically.
The end of a commercial lease is a critical moment that requires careful planning. Missing the renewal request deadline means losing the right to renewal and potentially the entire business location.
The Act of 30 April 1951 on commercial leases provides a detailed framework for what happens at expiry, designed to balance the tenant’s interest in continuity with the landlord’s property rights.
Renewal procedure
The renewal request must be made by registered letter sent between 18 and 15 months before the lease expires. The letter must state:
- The proposed conditions for the new lease period
- The activities the tenant intends to carry out
- Any changes to the existing terms
The landlord must respond within 3 months of receiving the request:
| Landlord’s response | Consequence |
|---|---|
| Acceptance | New 9-year period on agreed terms |
| Silence | Deemed acceptance of the tenant’s proposed terms |
| Refusal with grounds | Eviction indemnity may be due |
| Counter-proposal | Negotiation, or referral to the justice of the peace |
The tenant has a maximum of 3 renewal rights, meaning the commercial lease can last up to 36 years in total (4 periods of 9 years).
If the tenant misses the 18 to 15 month window for the renewal request, the right to renew is lost. The lease will simply end at expiry with no compensation for the tenant.
Eviction indemnity
When the landlord refuses renewal, an eviction indemnity may be due to the tenant:
| Ground for refusal | Indemnity |
|---|---|
| Personal occupation by landlord | No indemnity (if effective within 6 months) |
| Demolition/reconstruction | No indemnity (if permits obtained) |
| Serious breach by tenant | No indemnity |
| No specific grounds | 1 year of rent |
| Refusal for different tenant | 2 years of rent |
| Change of business affecting clientele | 3 years of rent |
The eviction indemnity compensates the tenant for the loss of their business location and clientele. It is separate from any contractual indemnities that may have been agreed in the lease.
BailBelgique automatically tracks your commercial lease deadlines and sends reminders for the renewal request window (18-15 months before expiry).
Regional specifics
The Act of 30 April 1951 on commercial leases is federal legislation that applies uniformly across Belgium. There are no regional variations in the rules on renewal, eviction indemnity, or expiry of commercial leases.
However, local municipal regulations may affect:
- Permitted commercial activities in certain zones
- Opening hours and operating conditions
- Planning permits for changes to the premises
Act of 30 April 1951 on commercial leases, Art. 13-16 — Text on Justel. Governs renewal and expiry of commercial leases.