At a glance
- For retail and hospitality premises (290), the landlord can only give notice of termination on statutory grounds.
- For offices and industrial units (230a), there is only protection against eviction for a maximum of one year.
- A sale does not terminate a tenancy: a buyer takes over existing tenancy agreements.
- If you intend to redevelop in the future, align the lease term and termination clauses with that intention now.
Grounds for terminating a tenancy of 290 commercial premises
- Tenant misconduct, such as persistent payment arrears.
- Urgent own use by the landlord, after the initial five-year term.
- Implementation of a current zoning plan or environmental plan.
- Renovation that cannot be carried out without terminating the tenancy.
- After ten years: a reasonable balancing of interests by the court.
Protection against eviction for 230a premises
If the landlord gives notice to terminate the tenancy of an office or industrial unit, the tenant can apply to the court within two months for a postponement of eviction. This postponement lasts a maximum of one year and can be extended twice. In practice, this often leads to an agreed exit arrangement.
Consequences for value and sale
A property with a reliable tenant and a long lease term is attractive to investors and is valued on the basis of rental income and gross initial yield. An owner-occupier, by contrast, wants a vacant property. Your commercial real estate agent helps identify which buyer group will deliver the best return and how to align the tenancy arrangements accordingly.
Frequently asked questions
Can I evict my tenant if I want to sell the property?
No, a sale is not grounds for termination. The buyer assumes the landlord's rights and obligations.
Does security of tenure also apply to temporary lettings?
Not for Article 290 premises if the total lease term is shorter than two years. For Article 230a premises, protection against eviction is often more limited under short-term contracts.