In Norway, there are two main types of leases:
Last modified 21 Jan 2026
The duration of commercial leases varies depending on availability, type of premises, type of lease, rent levels, who the contracting parties are and other factors. Leases are often granted for five or ten years, with a right for the lessee to renew for a further five years.
Commercial leases are normally for a fixed term, which means that the lease lapses without the need for a termination notice upon expiry of the lease term.
If no expiry date is stipulated, the lease is for an indefinite period. Unless otherwise agreed, such lease must be terminated by a notice to the other party with a 3 months' notice period.
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The Tenancy Act regulates all types of leases (except land leases), irrespective of category of real estate.
In residential leases, conditions that are less favourable to the lessee than those provided for under the Tenancy Act cannot be agreed or invoked.
Commercial agreements may, with certain exceptions, deviate from the provisions of the Tenancy Act.
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The lessee does not have any statutory right to extend the lease or continue to occupy the premises after expiry of the lease.
The Tenancy Act stipulates, however, that if a fixed-term lease continues for more than 3 months after expiry of the agreed lease term without the lessor having requested the lessee in writing to vacate the premises, the lease agreement shall be deemed to have become time indefinite. This provision can be deviated from in commercial leases and in the standard form agreement widely used in the Norwegian marked, the time limit for sending a request to vacate is extended to 6 months.
If the lease has become indefinite due to the absence of a timely vacating request, the lessor must terminate the lease by 3 months` notice.
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Pursuant to the Norwegian Enforcement Act (Tvangsfullbyrdelsesloven) the lessee can in the lease agree to mandatory eviction of the premises at expiry of the lease. Consequently, the lessor should ensure that such an eviction clause is included in the lease agreement. The standard form agreement for commercial leases contains such an eviction clause.
The lessor should also ensure that a vacating request is sent to the lessee without delay after expiry of the lease term to avoid the lease becoming time indefinite.
If the lessee does not vacate voluntarily, the lessor may file an eviction request to the execution and enforcement authority. The lessee is entitled to a notice of 14 days before eviction is requested. The eviction process normally takes between 2–4 months from the first notice to completion but may take considerably longer depending on the complexity of the matter, the execution and enforcement authority`s workload and other factors.
If the lease does not contain an eviction clause, the lessor must obtain a court order before the eviction can be carried out.
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The Norwegian Enforcement Act stipulates that the lessee in the lease can agree to mandatory eviction of the premises if the rent or any supplementary payments agreed are not paid on due date. The lessor should ensure that such an eviction clause is included in the lease agreement. The standard form agreement for commercial leases contains such an eviction clause.
The lessee has a right to receive a prior warning with a 14-day deadline to pay the outstanding amount. If the lessor has not received payment within the deadline, an eviction request may be filed to the execution and enforcement authority. The eviction process normally takes between 2–4 months from the first notice to completion but may take considerably longer depending on the complexity of the matter, the execution and enforcement authority`s workload and other factors.
The lessee can avoid eviction by paying the outstanding amount immediately before the eviction is initiated.
If the contract does not contain an eviction clause, the lessor must obtain a court order before the eviction can be carried out.
If the lessee commits a material breach of the lease agreement the lessor is also entitled to terminate the contract. In such cases, the standard form agreement stipulates that the lessor shall immediately vacate the premises. There is, however, no mandatory eviction that the lessee can agree to for such instances. This means that the lessor must obtain a court order before the eviction can be carried out.
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The government/local authorities or other third parties cannot enforce the termination of a lease. If a leased property is subject to compulsory purchase, the lessor has to negotiate with the lessee for vacant possession.
Last modified 21 Jan 2026
The lessor has no statutory right of collateral or other security for the lessee`s obligations. Consequently, such security needs to be agreed.
The standard form agreement for commercial leases stipulates that the lessee shall either furnish a bank guarantee or a cash deposit or as security. Common market practice is a bank guarantee equal to 6 (and occasionally 12) months` rent.
A cash deposit must follow a specific procedure, among which the deposit account shall be opened in the name of the tenant. Further no part of the deposit can be paid to either party before expiry of certain notice periods or on the basis of the parties` mutual consent or a final and binding judgement. A deposit is normally also limited to 6 months` rent.
In many instances the parties also agree to a guarantee from the lessee`s parent company. Such parent company guarantee is normally unlimited in amount.
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The lease normally stipulates the permitted use of the premises and that any changes in the use requires the are permitted without the lessor`s consent.
Further, the lease normally provides that the lessee shall handle the premises and the property with due care, comply with any public and private law provisions that apply to the lease, and ensure that the lessee`s use of the premises complies with all public law requirements applicable at any given time.
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The lessee is usually not allowed to make any changes to the premises without the prior written consent of the lessor. If consent is granted, the lessor shall specify whether the changes shall be reversed. The parties should also agree on how any costs and benefits related to the alterations and improvements shall be allocated. Unless otherwise agreed in writing, all changes carried out by the lessee shall be reversed upon vacation of the premises.
The lessee is normally responsible for obtaining any necessary government permits and for otherwise complying with all government requirements applicable to any work performed.
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Under the Tenancy Act the lessee cannot transfer its rights or obligations under the lease agreement to anyone without the lessor’s consent. Consent can be withheld at the full discretion of the lessor. The same limitation is also normally agreed in commercial leases.
The prevailing standard form agreement stipulates that in the event of a change of control at the lessee, the lessee shall without delay send a written notice to the lessor with information on who is obtaining control over the lessee. This implies that the transfer of shares in the lessee does not require the lessor`s consent.
Normally, the lessee does not have a right to sublet the premises without prior written consent of the lessor. The lessor may not withhold consent without justifiable grounds.
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Rent for commercial leases is often adjusted annually in line with an indexation. Adjustment to market level usually only happens when a lease is renewed. In retail leases the rent may also sometimes be linked to the lessee’s turnover.
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The most commonly used index is the Consumer Price Index from Statistics Norway.
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The lessor may include the premises in its voluntary registration in the VAT Register. The condition for such registration is that the lessee is conducting activities subject to VAT in the premises. Upon such registration, the lessor is entitled to add VAT to the rent and any other costs paid by the lessee.
Registration of the premises in the VAT register allows the lessor to recover VAT on capital and operating expenses in the premises.
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There are no costs other than the initial rent at the start of a commercial lease, unless otherwise agreed.
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It is normally the lessor’s responsibility to pay the cost of all external building maintenance. The lessor must also pay for the replacement of any technical facilities, such as lifts, ventilation plants, fire-fighting facilities, heating plants, sun awning systems etc., when these can no longer be maintained in an economical manner. The lessor`s replacement obligations also extend to external areas, including fences, surface coverings, etc.
The lessee will normally pay, in addition to the rent, a proportional share of the costs for maintenance, operation and cleaning of common areas, external areas and technical installations at the property. Such joint costs are usually allocated between the lessees according to leased area. The lessor covers joint costs pertaining to any vacant premises. The joint costs are covered each year by way on an on-account amount based on budgeted costs, with final settlement against the actual costs in the following year.
The parties may agree that that the lessee shall be responsible for all or parts of the external building maintenance and replacement of technical installations (triple net/bare-house lease). This is typically relevant for single-tenant buildings with long lease terms.
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In commercial leases the lessee shall normally arrange and pay for the internal maintenance of the premises. The lessee`s maintenance obligation includes repairs and periodical maintenance, such as the surface treatment of floors, walls and ceilings, necessary replacement of eg wallpapers, flooring, etc., replacement of parts and simple repairs of devices in the premises, such as visible pipes, cords and installations for supplying and draining water, heating, ventilation/cooling, electricity/ICT and white goods.
The lessee is also often responsible for the repair of any damage caused by burglary or vandalism in the premises, including damage to windows, frames, and entry doors and gates.
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Costs for common utilities are normally distributed and charged to the lessees as joint costs. In the event that separate meters for electricity, water, district heating or other forms of consumption are installed in the premises, the lessee shall to the extent possible establish its own separate subscription with the relevant providers and pay for its own consumption. Otherwise, the lessor will invoice the lessee for the lessee`s consumption.
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It is commonly agreed that each of the parties shall keep their assets and interests insured. The lessor is normally responsible for property insurance. The lessee shall insure its own interior fittings, fixtures and furnishings, movables, machinery, data, goods, operating loss/interruption and liability, as well as doors and windows in the premises.
If the lessee’s activities result in any increase in the insurance premium or any new safety requirements that requires investments, it is commonly agreed that the lessee pays the cost.
Last modified 21 Jan 2026
What is the usual length of each type of commercial lease?
The duration of commercial leases varies depending on availability, type of premises, type of lease, rent levels, who the contracting parties are and other factors. Leases are often granted for five or ten years, with a right for the lessee to renew for a further five years.
Commercial leases are normally for a fixed term, which means that the lease lapses without the need for a termination notice upon expiry of the lease term.
If no expiry date is stipulated, the lease is for an indefinite period. Unless otherwise agreed, such lease must be terminated by a notice to the other party with a 3 months' notice period.
Last modified 21 Jan 2026