Commercial Leases in France (Bail Commercial): A Guide for Foreign Businesses

Articles 27 August 2026

A French commercial lease (bail commercial) typically runs for nine years with tenant break options every three years, gives the tenant a strong right to renewal, and caps rent revision — so foreign tenants should negotiate the destination clause, charges, and exit terms before signing.

The French bail commercial is heavily regulated and strongly protects the tenant’s business. Foreign businesses that treat it like an ordinary lease miss valuable rights and hidden costs. This guide explains the 3-6-9 structure, renewal, rent, and the clauses that matter most.

Key Points of a French Commercial Lease

Item	Default Rule	Why It Matters
Term	Nine years (3-6-9)	Long commitment with break options for the tenant
Break option	Every three years for tenant	Main exit flexibility
Renewal right	Tenant can demand renewal	Protects the goodwill (propriété commerciale)
Rent revision	Capped indexation (ILC/ILAT)	Limits sudden rent hikes
Eviction indemnity	Payable if landlord refuses renewal	Compensation for loss of the business (fonds de commerce) or its relocation

What Is the 3-6-9 Lease and Why Is It Standard?

The classic bail commercial lasts nine years: the landlord is legally required to grant a lease of at least nine years, as the law prohibits a shorter term, and the tenant can normally give notice to terminate at the end of each three-year period with six months’ notice, unless the lease validly contains contrary stipulations. This gives businesses long-term security while keeping periodic exit rights. Landlords are far more restricted in ending the lease early.

What Is the Right to Renewal (Propriété Commerciale)?

At the end of the lease, the tenant generally has a statutory right to renewal. If the landlord refuses without a valid legal ground, it must usually pay an eviction indemnity (indemnité d’éviction) compensating the loss of the business (fonds de commerce) if it cannot be relocated, or the cost of relocating it if it can. This is the cornerstone of tenant protection in France.

How Is Rent Set and Revised?

Initial rent is freely negotiated, but revisions are regulated.

Indexation: rent tracks an official index (ILC for retail, ILAT for offices).
Triennial revision: possible every three years, with statutory smoothing to avoid brutal jumps.
Renewal rent: in principle set to rental value (valeur locative), but capped (plafonnement) under Article L.145-34 unless there has been a notable change in the local’s characteristics, its permitted use, the parties’ obligations, or local commercial factors, or the lease exceeds nine years by tacit extension (cap ceases beyond twelve years).

Which Clauses Should Foreign Tenants Negotiate?

Destination clause: defines permitted use; keep it broad enough for future pivots.
Charges and works: the lease must include an itemised, limitative inventory of charges, taxes and works allocated between landlord and tenant (Article L.145-40-2), including a rolling three-year works forecast; Article R.145-35 lists specific charges that cannot be transferred to the tenant.
Security deposit and guarantee: since the 26 May 2026 simplification law, the security deposit and any other guarantee (bank guarantee, parent-company guarantee, etc.) securing performance of the lease are capped at one quarter’s rent for leases entered into or renewed from that date; negotiate the amount and form of guarantee within that ceiling.
Assignment and subletting: protect the right to assign, especially on a sale of the business.

Commercial Lease vs Short-Term Lease in France

Feature	Bail Commercial (9 yrs)	Bail Dérogatoire (short-term)
Maximum duration	Nine years (renewable)	Up to three years total
Renewal right	Yes, strong	No automatic right
Eviction indemnity	Usually due	Not applicable
Best for	Established operations	Testing a location

Final Verdict

Our real estate team negotiates and litigates commercial leases for foreign occupiers and investors across France, from a single flagship store to a national portfolio. De Gaulle Fleurance reviews destination, charges, renewal and exit terms so tenants keep control of cost and flexibility.

Catherine
Castro

Partner

FAQs

Can the landlord increase rent freely at renewal?

No. Renewal rent is generally capped to a regulated calculation (indexed to the ILC/ILAT), unless there has been a notable change in the local’s characteristics, its permitted use (destination), the parties’ respective obligations, or local commercial factors, in which case the rent can be reset closer to full rental value, subject to a 10% per year smoothing limit.

Can a tenant leave before nine years?

Usually yes: the tenant may give notice to terminate at each three-year break with six months’ notice, unless the lease validly contains contrary stipulations excluding this right (permitted for leases over nine years, single-use premises, offices, or certain storage premises).

What is an eviction indemnity?

Compensation the landlord must pay if it refuses to renew a protected lease: it covers the loss of the business (fonds de commerce) where it cannot be relocated, or the cost of relocating it (moving and reinstatement expenses, and transfer duties) where it can.

Are commercial leases in France always nine years?

The protected bail commercial must be granted for at least nine years — the landlord cannot lawfully offer a shorter term — but parties can use a shorter derogatory lease of up to three years for temporary needs.