A lease contract specifically for pop-up stores is a reality in Brussels
A specific lease contract for pop-up stores is now a reality in Brussels.
By a legal text of April 25, 2019, the Brussels region provided for a specific regime for commercial leases concluded for a maximum period of one year.
The capital thus joins the other regions of the country (Flanders and Wallonia) that had already passed such legislation.
These new rules were necessary to regulate pop-up stores, which are part of the commercial life of the capital. Prior to that, the only legislation on commercial leases only covered nine-year contracts, which no longer corresponded to economic reality.
This new framework should support the development of commerce and fight against commercial vacancy.
Further below, you will find some of the features of this new legal framework:
Field of application
First of all, the new legislation applies to all commercial leases concluded in writing after May 19, 2019 and for a period of maximum one year.
Duration and renewal of the lease
The lease is concluded for a period of maximum one year and automatically terminates at the end of the term, without the need for express termination (articles 3 and 4). The lessee is not entitled to a tacit renewal of the short-term commercial lease but the parties may expressly agree to renew the lease, which will continue under the same conditions as the initial contract and without the total duration of the lease exceeding one year.
If the lease is extended by the parties for a period exceeding one year, it will be reclassified as a classic commercial lease and will be deemed to have been concluded for a period of nine years (article 4).
The lessee may, at any time, terminate the lease, provided that he/she gives one month's notice of termination (article 5).
The parties may also agree to terminate the lease at any time provided that the agreement is in writing (article 6).
Article 9 of the text states that the amount of the rental guarantee may not exceed one month's rent.
Lease transfer and sublease
The transfer of the lease is not permitted and the sublease is only permitted in case of agreement in written between the parties (article 15).
At Vanbelle Law, we are at your disposal for more specific information on the application of the short-term commercial lease or for any real estate issue, so feel free to contact us.
Source: D. Léonard, Les baux pour les magasins pop-up bénéficient désormais d’une législation spécifique à Bruxelles, 17/07/2019, available at www.lexgo.be.