# Commercial lease Source: https://contracko.com/glossary/commercial-lease # Commercial lease A lease of business premises, governed in the Netherlands by protective statutory regimes. ## 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. ### How Contracko helps Contracko tracks commercial lease renewal notice deadlines as high-priority reminders, reducing the risk of an accidental five-year rollover under the 7:290 BW regime. The AI extraction captures rent-review dates and index-linked adjustment clauses, so the obligation record keeps finance and operations informed of upcoming rent changes without manual monitoring. ## Legal references - [BW 7:290 Dutch Civil Code: retail/hospitality business space Dutch law](https://wetten.overheid.nl/BWBR0005290) - [BW 7:230a Dutch Civil Code: other business space Dutch law](https://wetten.overheid.nl/BWBR0005290) 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. ## Relevant for [Commercial Real Estate](https://contracko.com/industries/commercial-real-estate)[Property Management](https://contracko.com/industries/property-management)[Retail & Wholesale](https://contracko.com/industries/retail-wholesale)[Restaurants & Food Service](https://contracko.com/industries/restaurants-food-service) ## Related clauses - [Renewal and Notice Period Clause](https://contracko.com/clause-library/renewal-and-notice) - [Price Indexation Clause](https://contracko.com/clause-library/price-indexation) - [Termination for Cause Clause](https://contracko.com/clause-library/termination-for-cause) ## Related terms - [Term (duration)](https://contracko.com/glossary/term) - [Chain clause (perpetual obligation)](https://contracko.com/glossary/chain-clause) - [Indefinite-term contract](https://contracko.com/glossary/indefinite-term-contract) - [Renewal clause](https://contracko.com/glossary/renewal-clause) ### Never miss a contract deadline again - AI finds renewal and notice dates - Risks and obligations are surfaced automatically - Reminders help you act before dates slip Drop a contract to start PDF, DOCX, PNG, or JPG [Start 7-day trial](https://app.contracko.com/register?appLanguage=en&utm_source=glossary_sidebar&utm_medium=lead_magnet&utm_campaign=glossary_sidebar_contract_upload&content_slug=commercial-lease&content_title=Commercial+lease&cta_placement=glossary_sidebar_cta&source_tool=glossary_sidebar_commercial-lease) GDPR compliant. Encrypted. Never used for AI training. ## Frequently asked questions Common questions about this term. - **Q:** What is the standard term for retail and hospitality leases under Dutch law? **A:** Under BW 7:290, the standard term is five years plus an optional five-year extension (5+5). After the first five years, either party may terminate on notice; after the second five years, the lease continues for an indefinite term terminable on notice. - **Q:** Can a landlord terminate a commercial lease early under Dutch law? **A:** For 7:290 BW premises it is very difficult; the landlord must rely on one of the statutory grounds (dringend eigen gebruik, serious default, etc.) and court approval is required. For 7:230a BW premises, termination for convenience is possible but the tenant has an eviction protection right. - **Q:** How is rent reviewed during a commercial lease? **A:** The lease contract usually specifies annual indexation (typically CPI) and may allow a market rent review at the end of each lease period. For 7:290 BW leases, either party can request a market rent review at the end of each five-year period via the Huurcommissie or court. - **Q:** What is dringend eigen gebruik and when can a landlord invoke it? **A:** Dringend eigen gebruik (urgent personal use) is a ground for terminating a 7:290 BW lease where the landlord genuinely and urgently needs the premises for its own business or that of a first-degree relative. The court will weigh the landlord's need against the tenant's interest and may award compensation. - **Q:** What notice period must a tenant give to end a commercial lease? **A:** At least one calendar year before the end of the relevant five-year period for 7:290 BW leases, unless a shorter period is agreed. For 7:230a BW premises, the contractual notice period applies. ## See these terms in your own contracts Upload a contract and Contracko pulls out the key terms, dates and obligations, then reminds you before each one matters. [Start 7-day free trial](https://app.contracko.com/register?appLanguage=en) Book demo