activelawSpecialty Areas
Commercial Lease Law

Commercial Lease Law in Hannover. Lease, portfolio, dispute.

We draft and negotiate commercial leases and act for landlords, tenants, portfolio holders and developers across Germany.

Große Lagerhalle mit Hochregalen und Mitarbeitern zwischen den Gängen
Drafting leases

Drafting for long-term certainty

On signing a commercial lease the commercial course is set for many years. Template leases rarely do justice to the complexity of larger properties or to individual use concepts. We develop structures tailored to the property, the intended use and the income target.

  • Commercial leases for offices, retail, logistics, hotels and special-purpose property
  • Provisions on term, renewal options, special termination rights, commencement and handover
  • Index and stepped rents and other value protection clauses within the limits of the Price Clause Act
  • Repair and maintenance obligations, including the limits of roof and structure clauses
  • Protection against competing uses, operating obligations, range restrictions and exclusivity
Tenant fit-out and handover

The interface between development and letting

On new builds and larger refits the success of the lease depends on fit-out, handover and commencement fitting together. We allocate those three points expressly.

  • Landlord and tenant fit-out and the specification of works
  • Condition on handover and the technical requirements for the premises
  • Fit-out contributions and rent-free periods
  • Conditions for commencement and handover, and the consequences of construction delay
  • On construction questions we work with our practice area Construction Law, on permits with Administrative Law
Formal requirements and contract management

Form requirements for long leases and amendments

The formal requirements have changed fundamentally. For commercial leases the former written form requirement of section 550 of the Civil Code was replaced by text form with effect from 1 January 2025. A party that misses the form has a lease terminable at any time on ordinary notice.

  • Review of existing leases and all amendments for defects of form and documentation
  • Drafting and review of amendment agreements
  • Recording the exercise of options, rent adjustments and changes in area
  • Advice on the text form requirements applicable since 2025 and the transitional rules for older leases
  • Review of termination rights arising from defects of form in older leases
Asset and portfolio management

Ongoing support for properties and portfolios

Active asset management means managing the existing leases. Renewals, indexation and changes in area act directly on income and on the value of the property.

  • Lease renewals and the exercise of options
  • Enforcement of indexation and other rent adjustments
  • New and follow-on lettings and amendment agreements
  • Modernisation, conversion and refurbishment during the lease
  • Standardisation of lease templates for larger portfolios
Defects and rent reduction

Disruption during the lease

Defects in commercial premises hit the business directly, whether through damp, noise, temperature or a restriction of the agreed use. The reduction takes effect by operation of law but is frequently restricted in commercial leases.

  • Claims for the remedy of defects and the notification of the defect
  • Rent reduction for commercial premises and the effectiveness of contractual restrictions
  • Rights to withhold performance and claims for damages and expenses
  • Disputes over repair and maintenance obligations
  • Securing evidence and independent evidence proceedings
Termination and surrender agreements

Bringing a lease to a planned end

The ending of a lease should be prepared early. Errors in termination or in the wind-down lead to lost rent, delay in re-letting and claims for damages.

  • Ordinary termination and the review of termination rights and periods
  • Termination without notice for arrears of rent or other serious breach
  • Surrender agreements and wind-down arrangements
  • Early ending of long leases and the valuation of the settlement payment
  • Damages for damage to the premises or for late return
Eviction and litigation

Enforcing lease claims through the courts

Where a conflict cannot be resolved out of court we act for landlords and tenants across Germany. The strategy follows the commercial objective, that is a swift return of the property, securing the payments or preserving the lease.

  • Eviction proceedings and enforcement of the eviction order
  • Claims for rent, service charges and additional payments
  • Interim relief, for example on interference with possession or breach of an operating obligation
  • Defence against eviction and payment claims, including protection against enforcement
  • Working with experts on technical questions in dispute
Leases in property transactions

Reviewing leases in the legal due diligence

On the purchase and sale of commercial property the leases determine price, finance and income value. We review them and summarise the risks so that they can be taken into the negotiation.

  • Terms, renewal options and special termination rights
  • Rent levels, value protection and service charge provisions
  • Repair obligations, rent security and protection against competing uses
  • Amendments and defects of form that may open up a right of termination
  • Existing disputes and their commercial assessment, coordinated with our practice area Corporate Law where the property transfers through a company

Find the right adviser

Frequently Asked Questions

Answers to the most important questions

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What form does a long-term commercial lease require?
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Since 1 January 2025 text form is sufficient for commercial leases with a term of more than one year; the former requirement of written form has been dropped. Where the form is not observed the lease counts as concluded for an indefinite period and can be terminated on notice. Transitional rules apply to older leases, which we review case by case.

What notice period applies to an ordinary termination?
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Unless otherwise agreed, by the third working day of a calendar quarter with effect from the end of the following quarter. Most commercial leases are, however, for a fixed term and cannot be terminated on ordinary notice during that term. What then matters are special termination rights, options and the form of the lease.

Is an index rent clause in a commercial lease effective?
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As a rule yes, provided the requirements of the Price Clause Act are met. Among other things the landlord must waive ordinary termination for at least ten years, or the lease must run for a corresponding period. An ineffective clause leaves the rest of the lease intact, and the rent then remains unchanged.

May a commercial tenant reduce the rent because of defects?
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Yes, the reduction takes effect by operation of law for as long as the fitness of the premises is significantly impaired. In commercial leases it is frequently restricted by contract, for example to a later reclaim. A tenant who reduces should have documented and notified the defect, otherwise termination for arrears may follow.

What do buyers of commercial property check in the leases?
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Terms, options and special termination rights, rent indexation, service charges and repair obligations, and defects of form in leases and their amendments. These points determine the income value and with it the purchase price. We review them as part of the legal due diligence and summarise the risks for the price negotiation.

What does a roof and structure clause mean?
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It allocates repair obligations: the landlord bears the roof and the load-bearing structure, the tenant everything else. In standard terms the burden cannot be shifted without limit, and a clause drawn too widely may be wholly ineffective. The statutory allocation then applies, and the landlord bears considerably more than intended.

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