Termination of Lease Agreement for Business Premises

The termination of a lease agreement for business premises is subject to strict rules in Book 7 of the Dutch Civil Code (BW). Lessors may terminate due to urgent own use, non-extension in case of temporary contracts or default by the lessee. A notice period of at least one month applies, with written notice and motivation required. Lessees have a six-month reflection period after termination and may claim goodwill compensation in case of forced departure. The subdistrict court examines the reasonableness of the termination; own use must be concrete and necessary. For retail spaces, tenant protection plays a role via the Rent Tribunal for rent assessment. Bankruptcy of the lessee leads to automatic dissolution, but trustees may transfer the contract. Parties may arrange collective terminations in case of redevelopment. Practice: document everything to avoid court proceedings. This protection promotes stability in commercial real estate markets. (198 words)