The Renewal of Commercial Leases: When and How?

Gepubliceerd op 06/01/2025

Belgian commercial lease law provides specific protection for tenants who have entered into a commercial lease agreement. This protection is reflected, among other things, in the right to renew the lease. This right, enshrined in Articles 13 et seq. of the Commercial Lease Act of April 30, 1951, aims to ensure the continuity of commercial activities, thereby contributing to economic stability.

Application by the tenant

The initiative to apply for the renewal of a commercial lease always lies with the tenant. If there are multiple tenants, the application must be made by all tenants. This is because the parties to the agreement cannot be changed during the renewal process.

If the lease has already (validly) been transferred to a third party at the time of renewal, the renewal application must be submitted by the transferee.

Application to the landlord

Naturally, the application must always be addressed to the landlord. Depending on the circumstances, the application should thus be sent to the property owner, the usufructuary, the principal tenant, etc.

Similarly, if there are multiple landlords, the application must be directed to all landlords.

Mandatory Deadline

The tenant must apply for renewal in writing no earlier than 18 months and no later than 15 months before the end of the current lease term. Any application submitted outside this timeframe is void and invalid.

If the application is submitted prematurely, the Court of Cassation has ruled that the tenant can rectify this irregularity by submitting a new application to the landlord between the 18th and 15th months before the lease ends.

Strict Formal Requirements and Conditions

The tenant may choose to submit the application via a bailiff’s notice or by registered mail. The application must reach the landlord by the last valid day. If there is any uncertainty as to whether the registered mail will reach the landlord in time, it is recommended to opt for a bailiff’s notice.

The application for renewal of the commercial lease must include the conditions under which the tenant wishes to enter into the new lease. For example, the tenant may propose a new (lower) rent in their application.

An application lacking concrete conditions is invalid. If the tenant wishes to renew the lease under the same conditions as before, they may simply refer to this in the application.

Finally, the tenant must explicitly state in their application that the landlord will be deemed to agree to the renewal of the lease under the proposed conditions unless they notify their (reasoned) refusal within three months via a bailiff’s notice or registered mail.

Response by the Landlord

The landlord must then respond to the renewal application in a timely manner. The landlord has several options:

• They agree to the renewal, including the proposed new conditions.
• They agree to the renewal but propose different conditions.
• They fail to respond or respond too late, in which case they are deemed to agree to the renewal under the conditions proposed by the tenant.
• They refuse the renewal and provide a reasoned justification for their refusal.

If the parties cannot reach a final agreement on the renewal, the tenant may refer the matter to the Justice of the Peace within 30 days. The court will then decide the case based on equity.

Have you recently received a renewal application for a commercial lease, or do you wish to submit such an application as a tenant? Do not hesitate to contact our office so we can assist you.