In Belgium
The commercial lease is governed by the Act of 30 April 1951, one of the few federal laws still in force on rental matters (regionalisation did not affect this regime). This law applies to any property used for retail trade or crafts with direct contact with the public.
The law imposes a minimum duration of 9 years. The tenant has a right of renewal that can be exercised up to 3 times, bringing the theoretical maximum duration to 36 years.
How it works
Rent. Freely set by the parties. Can be revised every 3 years (triennial period) if the rental value has changed by at least 15%.
Renewal. The tenant must request renewal by registered letter or bailiff’s writ, between the 18th and 15th month before expiry. The landlord can refuse for limited reasons (personal occupation, reconstruction, higher offer from a third party).
Termination. The tenant can terminate at the end of each triennial with 6 months’ notice. The landlord can only terminate under very restrictive conditions provided by law.
Practical example
Marc opens a bakery in Namur and signs a 9-year commercial lease for a central premises. Rent: 1,800 EUR/month. Registration costs 0.2% x (1,800 x 12 x 9) = 388.80 EUR.
After 9 years, Marc wants to stay. He sends his renewal request 16 months before expiry. The landlord accepts and they agree on a new rent of 2,000 EUR/month.
Key considerations
Pop-up stores. The Regions have introduced short-term commercial lease regimes (maximum 1 year) for temporary businesses. These do not confer a right of renewal.