Commercial lease

Definition

A commercial lease grants a tenant the use of business premises against rent. Dutch law splits commercial premises into two regimes: retail and hospitality space (middenstandsbedrijfsruimte) under article 7:290 BW onwards, with strong tenant protection and statutory terms, and other business space under article 7:230a BW with mainly eviction protection. The applicable regime materially affects term, termination and rent-review rights.

Example

A retailer leasing a high-street shop falls under the 7:290 BW regime, giving it the standard 5+5-year term and statutory protection against termination.

Why this is a business risk

Misclassifying the applicable BW regime means a tenant may unknowingly waive statutory protections, or a landlord may find termination attempts ineffective. Commercial leases are long-term commitments: a business locked into a 5+5-year lease whose model changes cannot easily exit without negotiating a costly settlement. Rent-review clauses linked to CPI or a different index can produce significantly higher rents than anticipated over the full term.

How to manage it

• Identify at the outset which BW regime applies (7:290 or 7:230a) and understand the resulting statutory rights and obligations before signing.
• Track rent-review dates and the index applied so you can model rent evolution and budget accordingly.
• Note the notice period for termination of each lease cycle in your contract system; missing a notice deadline under a 7:290 BW lease triggers automatic renewal for another five years.
• Record the initial handover state (with photos and a snagging list) and keep it alongside the lease agreement to avoid end-of-lease disputes about reinstatement obligations.

Legal references

• BW 7:290 Dutch Civil Code: retail/hospitality business space Dutch law
• BW 7:230a Dutch Civil Code: other business space Dutch law

Unless marked otherwise, references are to Dutch law (Burgerlijk Wetboek, the Dutch Civil Code); EU instruments such as the GDPR apply across the EU. This is general information, not legal advice. Other jurisdictions treat these concepts differently. Verify the current text and your situation with a qualified lawyer.