Learn how commercial lease renewal works in Belgium, which formalities and deadlines apply, and in which cases a landlord can refuse renewal.
Commercial lease law grants commercial tenants important protection by giving them the right to request a renewal of their lease. This right is intended to ensure the continuity of the business and allow the tenant to continue operating in the same premises. However, the exercise of this right is subject to strict legal conditions and formal requirements.At the end of an initial lease term of nine years or more, the tenant is in principle entitled to request the renewal of the commercial lease. This preferential right applies in relation to any other potential tenant, provided that the tenant intends to continue the same commercial activity in the premises. Unlike residential lease law, there is no automatic renewal in commercial lease law. Renewal must always be expressly requested by the tenant.
The request for renewal must be submitted to the landlord by registered letter or by service of a bailiff’s writ. The law imposes a strict timeframe: the request must be made between the eighteenth and fifteenth month before the expiry of the current commercial lease. A request made outside this period may result in the loss of the right to renewal.
The notification must also include several mandatory statements. The tenant must specify the conditions under which they are willing to enter into the new lease. In addition, it must be explicitly stated that the landlord will be deemed to have accepted the renewal on the proposed conditions if they do not respond within three months in the same formal manner, either with a reasoned refusal or with alternative lease conditions. The absence of these statements may render the request null and void.
After receiving a valid request, the landlord has three months to respond. This response must also be sent by registered letter or bailiff’s writ. The landlord may accept the renewal, propose different conditions, or refuse the renewal.
If the landlord refuses the renewal or makes a counter-offer that the tenant does not accept, the tenant has thirty days to decide whether to bring the matter before the justice of the peace. A timely response is essential to preserve their rights.
The landlord cannot refuse renewal without justification. Commercial lease law provides an exhaustive list of grounds for refusal, set out in Article 16. One common example is the landlord’s intention to personally and effectively occupy the property. In such cases, the refusal may be validly invoked, provided the legal requirements are met.
The landlord may also refuse renewal without relying on a specific statutory ground. However, in that case, the landlord is required to pay the tenant an eviction compensation equal to three years’ rent.
In principle, a commercial tenant is entitled to three successive lease renewals of nine years each. This means that renewal is possible after the initial lease term, as well as after the first and second renewal periods. As a result, a commercial lease may, under certain conditions, last for a very long time.
The parties may agree to deviate from this standard duration and provide for a shorter renewal period. Such a deviation is only valid if recorded in an authentic deed or in a declaration made before the court.
After three successive renewals, the tenant’s legal right is fully exhausted. The commercial lease then ends automatically, and the landlord regains full freedom over the property. No additional notice or termination is required to end the agreement.