What to look for when renting office space

When signing a lease for office space (commercial space), it is crucial to pay attention to the following elements, as these contracts often differ from standard residential lease laws:

• Destination and Use: Check carefully that the agreed destination in the contract (e.g., office, commercial activity) matches your planned use. Find out if any renovations or modifications (layouts, data cabling) to the space are allowed and who bears the costs when you leave.

• Duration and Termination Options: Business leases often have fixed, long terms (e.g., 9 years), with strict rules for interim termination. Make sure notice periods and any termination fees are clear, especially if you expect flexibility.

• Rent Charges and Cost Sharing: Be clear about what charges and taxes (property tax, insurance, common expenses) are borne by the tenant. Often the distribution of costs is different with office space than with residential leases.

• Rent Indexation: Confirm the base index and the date of annual indexation so that you can correctly estimate future rent increases.

• Maintenance and Repairs: Define who is responsible for major repairs (structure, roof) versus minormaintenance (interior finishes, installations).

A clear and complete contract prevents costly disputes and ensures a stable foundation for your operations.

A further explanation of this process

What does an office lease entail?

An office lease, also known as a common law lease, is intended for non-commercial or commercial activities without direct contact with the public. This type of agreement is governed by the rules of the Civil Code and is distinct from both residential and commercial leases. It is characterized by the great flexibility it offers to both tenants and landlords, as it is less strictly regulated.

How long is an office lease valid?

Unlike other leases, there is no legal provision prescribing a specific duration for office leases. They are often entered into for a fixed period of 3 years or for an indefinite period. If a tenant remains in the premises after the expiration of a fixed-term contract and the landlord does not object, the agreement is automatically renewed for a period equal to the original term.

What termination rules apply to office leases?

A common law lease ends automatically at the end of the stipulated term, without prior notice. In principle, the contract cannot be terminated early unless both parties agree. The right of unilateral termination, where one party terminates the contract, does not usually exist with this type of contract. However, it is possible to agree in advance on the possibility of termination with a certain notice period. With indefinite rental agreements, the contract can be terminated at any time with one month’s notice.

Does an office lease need to be registered?

All common law leases, including those for office space, must be registered with the appropriate office of Legal Security in the region of the property. The landlord is primarily responsible for this registration, although the tenant may also do so. Registration is free of charge and must be done within two months of signing the contract.

What is the distinction between an office lease and a commercial lease?

Commercial leases fall under the Act of April 30, 1951, which was introduced at the time to stimulate the economy with protective leases for tenants, including long terms of 9 years. Moreover, a commercial lease can only be terminated by the tenant, with some exceptions. Office leases, on the other hand, are governed by the Civil Code and are much less regulated, with the content of the contract determining the rights and obligations of the parties

The main difference is in the destination

• A commercial lease is for commercial or craft activities that involve contact with the general public.
• An office lease is for non-commercial or commercial activities without direct contact with the public.

In addition, the tenant of a commercial lease must be registered with the Crossroads Bank for Enterprises, while the tenant of an office lease can be a natural or legal person.

What essential information should an office lease contain?

A common law lease must be in writing and include at least the following information:

• Identity of tenant and landlord: Name, first names, place and date of birth, and place of residence. In the case of legal entities (e.g., a corporation), the name, registered office and company number are required.
• Contract start date.
• Duration of Agreement.
• Type of agreement (e.g., primary residence or student room).
• Detailed description of all leased spaces and parts of the building.
• Rent excluding fees.
• Amount and nature of any common costs.
• Amount and nature of individual costs, if lump sum.
• Indication of the flat or provisional nature of any individual and common costs.
• Calculation method and distribution of charges in buildings with multiple dwellings, if the amount of charges is not flat.
• Presence of individual or communal meters.
• Date of the last EPC certificate (if required by the November 28, 2013 decree on energy performance of buildings) and the assigned performance index.

What is a warehouse lease?

A warehouse lease, like an office lease, falls under the category of common law leases unless the warehouse or storage space is part of a trade. In that case, the warehouse is included in a commercial lease. Warehouse leases also offer a high degree of flexibility, with tenant and landlord agreeing on clauses regarding duration, termination, renewal and indexation.

Optimal management of office lease agreements

Given the many rules and crucial data involved in office leases, specific software can greatly simplify management. Property management software such as Offimac can help by reminding you of important dates and required actions. Offimac also offers pre-populated texts for terminations, payment reminders or indexing. In addition to managing important dates, Offimac allows you to:

• See at a glance which payments have been received and which have not.
• Send automatic reminders when necessary.
• Index your rent in two clicks and send a notice to the tenant.
• Generate rental invoices and send them to your account.
• Regularize costs based on purchase invoices.
• Managing VAT.
• Maintain a clear overview of your assets through a complete dashboard.
• Manage your real estate anywhere via the mobile version.
• Centralize all relevant information about your assets (contracts, address book, documents, etc.).

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Source reference:

[1] Civil Code (Belgium). Sections 1713 to 1762: Statutory Provisions for the Lease of Real Property (Common Rental Law). [2] Specialized law firm in Real Estate Law. Analysis of the Differences between Commercial Lease and Office Lease (Common Rental Law). [3] Royal Federation of Belgian Notaries (notaris.be). The Most Important Contractual Clauses in the Leasing of Commercial Property (Excluding Retail). [4] Real Estate Sector Report. Market Analysis of Rents, Indexation and the Duration of Office Leases. [5] Federal Public Service Finance. Tax and VAT Aspects of Rental of Professional Real Estate (Option VAT). [6] Academic Legal Journal (Belgium). The Legal Consequences of the Lack of a Site Description and Registration for Office Leases. [7] Deloitte or PwC (Belgium). Accounting for Lease Obligations under IFRS 16 and Belgian GAAP. [8] Flemish, Walloon or Brussels Housing Decree. Delineation of Applicability: Exceptions for Purely Professional Use. [9] Construction and Facility Management Guide. Provisions on Maintenance, Repairs and the Distribution of Costs (Common Law). [10] Chamber of Commerce/Business Association. Advice on Negotiating Flexibility Clauses (Notice Periods and Exit Options). [11] Common Rental Law (Federal Legislation). Rules Regarding the Destination of the Premises and the Possibility of Reconstruction Works.

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