Commercial lease

Do favorable local commercial factors justify the removal of a commercial rent ceiling?

Publié le 20 octobre 2025 - Directorate of Legal and Administrative Information (Prime Minister)

The Court of Cassation has issued a ruling on the uncapping of the rent of a renewed commercial lease. Can the removal of the ceiling be justified by aspects relating to local commercial factors?

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Reminder

According to theArticle R145-6 of the French Commercial Code, the local commercial factors of a premises may be:

  • the size of the city, neighborhood or street where it is located;
  • the location of its establishment;
  • activities in the neighborhood;
  • means of transport...

A business that is a tenant of commercial premises requests the renewal of its lease. The lessor business accepts on the condition that the rent price increases (which would uncap the rent). The tenant, in financial difficulty, does not agree. The lessor refers the matter to the judge to fix the price of the renewed lease.

The Court of Appeal held that the road and real estate developments carried out in order to create a shopping center close to the premises had a “beneficial impact” on the commercial activity of the tenant. The removal of the rent ceiling from the lease is therefore justified in its view.

The tenant appeals in cassation.

The Court of Cassation upholds the appeal decision. For her, the “significant change” in local commercial factors (in this case, the creation of a shopping center close to the premises) justifies the removal of the ceiling on the price of the renewed lease where it has a favorable impact on the commercial activity carried out by the lessee.

This positive impact is assessed objectively and independently of the ‘actual and actual impact on the trade operated on the premises’. In other words, the direct impact on the economic situation of the tenant is not retained.

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