Renting a physical space in France (a shop, an office, a workshop) usually means signing a bail commercial, and its rules are unlike a standard commercial lease in the US, UK, or Gulf markets. Understanding the structure before you sign is what keeps you from being locked into a space, or losing one you've built a business around.
A bail commercial runs for a minimum term of 9 years, split into three-year periods, hence "3-6-9." As the tenant, you can give notice to leave at the end of any three-year period. The landlord, by contrast, cannot end the lease early or refuse to renew it without significant consequences. This asymmetry is the defining feature of French commercial tenancy law.
At the end of the lease, you have a statutory right to renewal (droit au renouvellement). If the landlord refuses to renew, they generally owe you an indemnité d'éviction: an eviction indemnity calculated on the commercial value of the business built at that location, plus relocation costs. This can be a substantial sum, which is precisely why landlords rarely refuse renewal outright; it's designed to protect the goodwill a tenant builds at an address over years of trading.
Rent revision during a bail commercial is tied to an official index: the ILC (indice des loyers commerciaux) for retail and craft businesses, or the ILAT for office/tertiary activities. At each triennial revision point, the increase is capped at the index's movement over that period; it isn't a market renegotiation. A temporary 3.5% cap on ILC increases that protected smaller tenants expired after Q1 2024 and no longer applies, so budget for the full indexed increase going forward.
A simplification law passed 26 May 2026 reformed several practical points that matter to tenants: monthly (rather than quarterly) rent payment is now a tenant's right rather than something to negotiate, security deposits are capped at one quarter's rent, the timeline for the landlord to return that deposit after move-out is now legally framed, and a contractual cap on ILC indexation is explicitly permitted. It also became harder for landlords to obtain payment extensions in non-payment disputes, worth knowing if you're the one negotiating a grace period during a slow quarter.
If you're testing a French location before committing for years, two shorter alternatives exist. A bail dérogatoire (also called bail précaire) can run up to 36 months total, including renewals, and lets both sides skip the bail commercial's renewal rights and eviction indemnity entirely: real flexibility, but no security if the landlord wants the space back. A bail professionnel is a different tool altogether, designed for regulated liberal professions (consultants, some healthcare practitioners) rather than commercial or industrial activity, with a shorter term and no eviction indemnity either.
The practical rule: use a bail dérogatoire to test a market or a location, and move to a full bail commercial once you know you're staying. Converting later is normal and expected; starting with a 9-year commitment before you've proven the location is the more common mistake.
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