How to cancel your office lease?

This is a question that many business leaders and other real estate managers or CFOs are asking themselves. The professional real estate sector is today in full upheaval because of the telecommuting, the new imperatives of flexibility, the desire to deTo such an extent that it becomes very difficult to project oneself on the long term, and to project one's future needs and those of one's employees.

If the need for a head office is not questioned for reasons of identity and social cohesion, real estate decisions have difficulty being formalized. The commercial lease, also known as the 3/6/9 lease, is no longer universally accepted as being too restrictive and not flexible enough. Moreover, the time has come to optimize budgets and reduce costs.

This benefits coworking spaces and other third-party locations, which are much more agile in their value proposition. Two questions remain today: is there any urgency to implement my real estate strategy and to look for offices to rent? How do I terminate my office lease? Here we answer all your questions: when to terminate it? what does the law say? what is the notice period to respect? ...

Follow our step by step recommendations and if by any chance, you wish to benefit from an accompaniment for your research of coworking space or business center rental, workin.space is here to help you!

Which contracts to rent an office?

First of all, it is useful to differentiate between the different types of office rental contracts? Among the most well-known, we find the professional lease, the commercial lease or 3/6/9 lease, the precarious lease or the service contract. In this article, we will focus on the first two.

What is a professional lease?

This professional lease concerns the real estate assigned to the only professional use with the exception of the liberal or commercial professions concerned by the commercial lease. The signature of a professional lease is a common operation but, less legally regulated than the commercial lease.

• Learn more about the professional lease

What is a commercial lease or 3/6/9 lease?

In commercial law, a commercial lease is a contract concluded between a lessor (the owner of the premises or the usufructuary) and the lessee (the entrepreneur or the company) concerning the exploitation of premises for professional or commercial purposes only. This lease is governed in French law by articles L145-1 and following of the Commercial Code.

• Learn more about the commercial lease

What is a precarious lease?

The precarious lease is also called a derogatory commercial lease or a twenty-three month lease. It is a short-term lease that does not allow for a long-term commitment. It offers flexibility and agility to both tenants and owners.

• Learn more about the precarious lease

What is the service contract?

It is a service agreement that commits a service provider company to perform a service on behalf of a client, in exchange for a fee.

• Learn more about the service provision contract

How do I terminate my commercial or professional lease ?

How to terminate a professional lease ?

Generally speaking, the lessor or the lessee can only terminate their lease at the end of a 3-year period or at the end of the contract. Nevertheless, the termination of a business lease may occur at any time in compliance with certain procedures. The professional lease is subject to article 57 A of law number 86-1290 of December 23, 1986 modified by article 43 of law number 2008-776 of August 4, 2008.

If the request for termination is initiated by the tenant at the end of a 3-year period, it can be made without any particular reason. The tenant announces his departure by registered letter with acknowledgement of receipt or by bailiff's act. This is also called a triennial leave.

If the request to terminate a professional lease is made outside this 3-year period, the tenant must respect a 6-month notice period. The duration can nevertheless be renegotiated with the lessor.

In case of death of the tenant, it should be noted that the lease contract is transmitted to the heirs. This means that the death of the tenant does not systematically lead to the termination of the lease.

Furthermore, if the termination comes from the lessor, either by refusing to renew the lease or by giving early notice to the lessee, it must also be done by registered letter or bailiff's notice 6 months before the expiration of the contract. The notice given to the tenant must specify the reasons for the refusal, otherwise the tenant has the possibility to contest it or to ask for an indemnity. It should be noted that in the case of reconstruction or transformation works, the lessor can also give notice to the tenant. The latter has a period of 3 months to accept the offer made, as the lessor must propose a replacement premises and pay an indemnity or a reimbursement of the expenses related to the move.

In more extreme cases, such as non-payment of rent or charges, non-payment of the security deposit, failure to take out insurance to cover rental risks, failure to comply with theIn more extreme cases, such as non-payment of rent or charges, non-payment of the security deposit, failure to take out insurance to cover rental risks, or failure to respect the obligation to use the rented premises peacefully (neighborhood disturbances, etc.), a formal notice procedure must be carried out by a bailiff.

How do I terminate a commercial lease ?

The commercial lease, by its nature, cannot be less than 9 years. However, the lessor and the lessee can terminate their contract at the end of a 3-year period or at the end of the lease, but also at any time in case of breach of certain contractual obligations.

If the tenant terminates the commercial lease within the time limit agreed upon in the contract, the termination can be done by bailiff's act or by registered letter with notice of receipt. A notice period of 6 months must also be respected. In the absence of a notice of termination or renewal at the end of the three-year period, the commercial lease is tacitly renewed.

In the event of the tenant's early departure, by mutual agreement for example, the procedures are more or less the same, but the lessor may also be required to ask the tenant to pay an early departure indemnity. The amount is generally calculated on the basis of the remaining months to run and the amount of income that this represents.

Here again, the lessor may be required to terminate the commercial lease agreement early in the event of work or failure to meet the lessee's contractual obligations.

How can I be assisted in terminating my lease ?

Indeed, the request to terminate a commercial or professional lease can be complex. There are many model letters available on the web to help you. Nevertheless, you can also ask for help from a real estate consulting firm or a law firm specialized in real estate law. The latter will be able to advise you in more detail about your rights and obligations and could also conduct negotiations on your behalf in a more legal and commercial approach.

And if you wish to terminate your coworking space contract? Have a chat over coffee with your site manager, the process is much more flexible.