Commercial Office Rental Belfast
- 1 Subscription for a precarious office lease: what does it involve?
- 2 What about the 3-6-9 lease formula?
- 3 If you had to choose between the two leases, which would be more suitable?
- 4 Who can rent commercial premises?
- 5 How to proceed to find a commercial premises?
- 6 Is the domiciliation of his company possible in a commercial premises is it possible?
However, renting offices for a so-called liberal sector activity entails renting professional premises, the lease of which has a minimum duration of six years. As for agricultural, industrial or craft activities, they are assigned to the commercial lease.
Office rental: which lease should be subscribed to?
The rental of premises to serve as an office is subject to a Commercial Office Rental Belfast professional lease. A company that does not carry out a commercial, industrial, artisanal or agricultural activity is obliged to take out a professional lease.
SMEs, large companies and even the self-employed who do not wish to commit themselves for too long can claim an office rental contract. This is why they are often offered leases or 3-6-9 commercial leases, both of which have their advantages and disadvantages.
Subscription for a precarious office lease: what does it involve?
The precarious lease, which is also called a derogatory lease, Commercial Office Rental Belfast is a form of short-term lease that must not exceed three years. It lasts 36 months and is an exemption from commercial leases. In the event that the tenant exceeds the normal period of the precarious lease and wishes to continue the lease, the latter then becomes a non-renewable commercial lease. Most often, tenants prefer to continue with a 3-6-9 contract. But if when drawing up the contract, neither the tenant nor the lessor want the lease to continue with a 3-6-9 lease, it is important that this is included as a clause in the lease agreement.
The precarious lease is important in that it is seasonal and requires fewer constraints. It is because of this evanescent character that start-ups subscribe to it easily.
What about the 3-6-9 lease formula?
This form of lease is actually a Commercial Office Rental Belfast lease that is subject to well-defined regulations. Subscribing to a professional lease is dependent on the registration of the company in the Trade and Companies Register or in the Directory of Trades. He tenant requests it. He must obligatorily give six months’ notice to the lessor by means of a bailiff’s deed. In the commercial lease which is well supervised,
It is necessary in the context of a commercial lease, to establish a contract. In the latter, the lessor must:
- Comply with capped rental prices;
- Respect the eviction indemnity. He can only proceed with a termination after three years and in the event that work that may be the subject of an evacuation of the premises has been carried out. Otherwise, an eviction indemnity must be paid to the tenant.
When the commercial lease ends (after 9 years), there is no automatic renewal of the lease. It is the responsibility of the lessor to inform the tenant of the end of the contract, or else of the renewal of the lease by a bailiff’s deed.
If you had to choose between the two leases, which would be more suitable?
Both leases offer advantages and also disadvantages. But, it is most often observed that the 3-6-9 formula is the most popular. Indeed, the owner has insurance for the first three years of the contract, knowing that the latter can only be terminated after three years. It offers him an advantage in terms of uncapping the lease. The precarious lease is also interesting because of its flexibility and its duration. Reasons for which, the people who do not want to settle on the long term in a room subscribe to it the most.
Who can rent a commercial space?
Commercial premises are reserved exclusively for commercial, craft and industrial activities. As a result, anyone working in these areas of activity can take commercial premises for the development of their activities.
It is common that at the end of a commercial lease, and when renewing it, the lessor increases the price of the lease.
Expanding a business means increasing its activity, managing new staff and the possibility of finding a more spacious place to ensure the continuity of the activity. It is therefore necessary to consider renting a commercial premises. This operation is not only expensive, but also requires a lot of energy. There are a few provisions to consider.
How to proceed to find a commercial premises?
It is very stressful to embark on the search for a commercial premises, but it is better to be careful in this quest. Certain elements must be taken into account, among others:
- The destination of the premises: the use of commercial premises may be limited to certain activities because of certain co-ownerships. Hence the importance of finding out about the type of activities authorized in the premises you are about to rent.
- Public reception standards: it is also important to take into account the reception of the public and the customers who constitute the company’s source of income. It is therefore important to ensure that the premises comply with said reception standards.
- The development costs necessary for your activity. The layout is to be taken into account. We may have found a room where an activity not similar to the one we are about to carry out in the room in question was practiced. This will generate costs for the reductions. Have you found the commercial space of your dreams? You can send the landlord a business rental request letter to let them know you are interested in their property.
Is the domiciliation of his company possible in a commercial premises?
The domiciliation of his company in commercial premises occurs in the event that an entrepreneur wishes to establish the registered office of his company at the place where he exercises his activity.
It is therefore the transfer of the company’s head office to the commercial premises that house the company’s operations center.
This is why during the registration of the company, the unique address of the commercial premises is provided.
The status of commercial leases applies to the rental of offices and more specifically it targets
Premises for the exclusive use of offices
In the absence of a precise destination for the premises within the leases, case law takes into account the activity of the lessee to qualify the premises as being for the exclusive use of offices. Therefore, the approach will consist of reporting on this case law in order to propose a definition of premises for exclusive use as offices.
1. The protective nature of the status of commercial leases.
Commercial leasing enjoys a protective status provided for in Articles L. 145-1 et seq. and R. 145-1 et seq. of the Commercial Code. These legal rules come from Decree No. 53-960 of September 30, 1953 regulating the relationship between landlords and tenants with regard to the renewal of rental leases for buildings or premises for commercial, industrial or artisanal use, which was subsequently codified. This statute provides, among other things, for rules relating to the control of rents, the possible right to renewal of the lease, the right to eviction compensation, etc. At the same time, the provisions of the Civil Code relating to the rental contract also apply to commercial rental. These legal rules leave an important place for freedom of contract, which requires strictness in contractual practice.
Since the decree of September 30, 1953, the status of commercial leases has undergone very few legal or regulatory changes. The last major law in real estate law attests to this observation. Indeed, the so-called ÉLAN law
of 23 November 2018 had very little impact on the rules applicable to commercial leases
We can only rejoice at such an observation, thus demonstrating the power and stability of the status of commercial leases. However, to benefit from this status, several conditions must be met, which are provided for in Article L. 145-1 of the Commercial Code. We will not perform an in-depth analysis of the status of commercial leases. The purpose of this article is to study the application of the said statute to the rental of offices as well as its consequences.
2. The concept of offices
This finding shows that the service sector dominates our economy. In addition, this sector is mainly exercised in offices. As a result, it is not uncommon for companies to resort to renting offices to carry out their activity. Thus, the commercial rental of offices deserves special attention.
Before taking an interest in the rental of premises for offices, it is necessary to be able to define the offices and this task is not so simple. There is no precise definition of this concept. Within the regulatory part of the Town Planning Code, article R. 520-1-1 lists the various premises which are used as offices. These are, for example, premises where “management, service, consultancy, study, engineering activities (…)” are carried out. It emerges from this text that offices are premises in which an intellectual service is carried out.
3. The commercial lease status requirement
The application of the status of commercial leases is subject to certain conditions (A) and this is also the case when the premises are allocated for the exclusive use of offices (B).
A – The conditions of submission to the status of commercial leases
4. The application of the statute of commercial leases
First of all, for the status of commercial leases to apply, it is obviously necessary that a person, the lessor, rents a building to another person, the lessee. The essence of the rental contract is then the transfer of enjoyment of an asset to the benefit of a tenant.
The fact remains that the building or the premises must present criteria of solidity and stability
Finally, the status of commercial leases only applies if a goodwill is operated and belongs either to a merchant or an industrialist registered in the trade and companies register.
5. Exclusion from the status of commercial leases for establishments hosting cowering
At the heart of our modern society,coworking “cowering” spaces are developing exponentially. So much so that in 2019 it is possible to read an article entitled: ” Coworkingand business centers: spaces to conquer for lawyers”
. Despite the rules of ethics specific to the legal profession which impose respect, among other things, for professional secrecy and the confidentiality of exchanges, the fact remains that these new shared premises allow professionals to reduce the costs linked to their activity. (such as secretarial work, cleaning, etc.). Such a profession that is often carried out in individual structures
Therefore seems more and more attracted by this type of organization
The idea is therefore to pool spaces such as offices or meeting rooms. Several companies can then coexist, without staying on the premises for a long time. Unlike the offices of a single company, coworking spaces allow people to meet for a meeting, for example, without their presence in the premises becoming permanent. Therefore, the conclusion of a commercial lease 3-6-9, with the people who use these premises, is without interest.
Moreover, and this is perhaps the main reason, the common use of spaces seems incompatible with the qualification of lease. In a judgment delivered on January 11, 2006
By the third civil chamber of the Court of Cassation
The judges of the high court held that “in the absence of free disposal for the exclusive use of this premises, the agreement signed between the parties could not be qualified as lease “. Thus, insofar as cowering spaces are shared spaces that are not reserved for the use of a single specific person, the qualification of commercial lease does not seem possible in this context.
However, a person who rents premises in order to create a cooking space there will conclude a commercial lease with the owner of the rented fund. The founders of cowering spaces can therefore enter into a commercial lease, but the status of commercial leases does not apply to users of said spaces. The application of the status of commercial leases to offices is not so simple and poses certain difficulties.
6. The obligation to respect the contractual destination
The Commercial Code refers to “premises for exclusive office use”
It is important to define these premises, because this qualification will have legal consequences.
Prior to this study, it should be remembered that the lessee is required to respect “the destination [of the leased property] given to him by the lease”.
7. The expansion of the concept of exclusive office use by case law
If a contractual clause provides that the rented premises are for office use without further specification, it is not possible to automatically conclude that these are premises for exclusive office use. In a judgment of December 7, 2017, the third civil chamber of the Court of Cassation questioned the qualification of exclusive office use when a clause in the lease contract stipulated that the premises were for use as “offices and domiciliation of companies, meeting rooms of the adjacent hotel
8. Multiple consequences
The application of the status Commercial Office Rental Belfast of commercial leases to the rental of offices has undeniable consequences: a possible waiver of the three-year review (B), the use of a specific index (C) and the possible allocation of certain charges (D). In addition, the major consequence of the application of the status of commercial leases to premises for exclusive use of offices is the lifting of the ceiling on rent (A).
9. The concept of uncapping the rent
The timing of the renewal of the commercial lease can be the source of conflicts between the tenant and the lessor, especially with regard to the setting of the rent for the renewed lease. With regard to the amount of the rent for the renewed lease, if article L. 145-33 of the Commercial Code provides that this must correspond to the rental value, article L. 145-34 of the same code lays down the rule the rent cap for the renewed lease. However, this article is not of public order and certain commercial leases are not subject to it: this is the case of commercial leases relating to premises for exclusive use as offices.
10. Uncapping the rent for premises used exclusively as offices
The status of commercial leases provides for the lifting of the ceiling on rent for premises used exclusively as offices. This rule appears in paragraph 1 of Article R.
- The waiver of the benefit of the uncapping of the rent. Jurisprudence has intervened on the question of whether the lessor Commercial Office Rental Belfast could implicitly waive the lifting of the rent ceiling for the renewed lease. In a judgment of the third civil chamber of the Court of Cassation dated January 5, 1993, the judges considered that “the fact, for a lessor, of never having claimed the removal of the ceiling could not definitively deprive him of the right to s ‘enjoy’
- However, insofar as Article R. 145-11 of the Commercial Code is not a provision of public order, the parties to the lease contract could derogate from it by providing for a clause which would set aside the rule of uncapped rent of the renewed lease.
- The importance of the precision of the clause relating to the destination of the premises
- The commercial destination Commercial Office Rental Belfast of the offices and the assignment to an exclusive office use are therefore the cumulative criteria which make it possible to escape the capping rule. has been previously demonstrated
It is therefore necessary to be particularly vigilant when drafting the clause relating to the destination of the rented building to avoid any ambiguity. The lessor will have every advantage in explicitly including in the lease an exclusive office use. Conversely, the tenant will prefer a broader destination, an “all businesses” use.
B – The possibility of waiving the triennial review
Commercial Office Rental Belfast known as the Pinellas , article L. 145-4 of the French Commercial Code provides for the possibility, for premises used exclusively as offices, of contractually excluding the three-year review. In principle, this option allows the tenant to give notice at the end of a three-year period. Consequently, with regard to the rental of premises for exclusive use as offices, the parties to the lease contract may decide to enter into a lease which will be for a fixed term of 9 years.
14. The rejection of the ILC and the admission of the ILAT
Law no. 2011-525 of May 17, 2011 Commercial Office Rental Belfast on the simplification and improvement of the quality of law introduced a specific index for tertiary activities. This is the quarterly rent index for tertiary activities (ILAT). This index is provided for in Article L. 112-2 of the Monetary and Financial Code. Thus, the rent for a commercial rental of offices cannot be subject to the commercial rent index (ILC), unlike the tertiary activities rent index (ILAT).
15. Brief reminder of the rules applicable to charges
Law No. 2014-626 of June 18, 2014 Commercial Office Rental Belfast relating to crafts, trade and very small businesses introduced an obligation to make an inventory of the rental charges due to each of the parties to the lease
17.premises for exclusive use of offices
If there is no doubt that the notion of office refers Commercial Office Rental Belfast to an intellectual service, it is more difficult to define “premises for the exclusive use of offices”
However, the qualification of premises for exclusive use as offices results in the uncapping of the rent at the time of renewal of the lease.
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