At Schlun & Elseven Rechtsanwälte, our team will provide market research and advise you regarding where to purchase commercial property. From there, we will work together to ensure that the purchase is smoothly carried out. Our lawyers will be in your corner and representing your interests throughout the transaction.
Commercial leasing is a different proposition from regular residential tenancy in Germany. Whereas residential tenancy has greater protections under the German Civil Code, commercial property leasing allows greater flexibility with freedom of contract. Both parties in a commercial leasing transaction are on a similar level of power. However, even with freedom of contract applying, there are rules around the terms and conditions of the contracts.
Leasing agreements need to state the rental property’s identity, the lease’s purpose, the rental period and the agreed fee. Such contracts can also outline elements such as the extent of the land usage (whether parking and cellar space is included), extended notice periods around the rental duration, the deposit and clauses concerning protection against competitors that are not necessary for the agreement to be valid.
Notice periods are usually provided at around six months but can also be extended in successful negotiations. However, extraordinary termination is allowed if parties do not fulfil their contractual obligations.
The rent price can be a set fixed rate, change over a set period, or should reflect the commercial tenant’s turnover.
Germany is one of the most lucrative markets in Europe to establish a company. The German market is particularly open to small and medium-sized companies. With its strategic location at the heart of Europe, its economic and political stability and growing investment opportunities in German real estate, it is no surprise that many investors and commercial enterprises look towards Germany as a country for expansion.
There are many locations in Germany where a company can establish itself or expand. Finding the right place for establishment can be critical for success, and that will depend on factors such as the nature of the commercial enterprise, the local market, whether the commercial property is for a flagship location or a branch and the financial situation of the company itself.