REALWorld Law

Commercial leases

Length of leases

What is the usual length of each type of commercial lease?

Netherlands

Netherlands

230a space

  • Leases of non-retail commercial real estate (for example offices, industrial and logistics space) may be concluded for a fixed term or for an indefinite period. Parties are largely free to agree the term. An initial term of five, ten or 15 years is common. Longer terms are also possible, particularly where significant tenant fit-out investments are expected.
  • It is also common to include automatic renewal periods and, where appropriate, break options.

290 business premises

  • 290 business premises leases are subject to semi-mandatory statutory provisions on duration. As a general rule, a 290 lease is entered into for an initial term of five years (or a longer initial term if agreed). Upon expiry of the initial term, the lease is extended by operation of law so that the total fixed term is at least ten years (for example 5+5, or 7+3), unless validly terminated in accordance with the statutory termination regime.
  • A 290 lease entered into for a fixed term of two years or less (article 7:301 of the Dutch Civil Code) is not subject to the statutory protection regime applicable to 290 leases, provided that (i) the agreement ends within that two-year period and (ii) the tenant’s actual use also ends within that two-year period. If the tenant remains in occupation after that period, the agreement converts by operation of law into a protected 290 lease for five years (less the period already elapsed), to which the statutory regime applies.