At a glance
- Commercial rents are almost always indexed annually using a CPI series published by Statistics Netherlands (CBS).
- Watch for minimum and maximum increases in the indexation clause.
- Calculate the impact of indexation over the entire lease term, not just the first year.
How indexation works
The rent is adjusted annually based on the consumer price index (CPI) published by Statistics Netherlands (CBS), measured over a specified reference period. The ROZ model lease contains a standard indexation clause that the parties can adopt or amend.
Common variants
- Full CPI indexation with no minimum or maximum.
- CPI indexation with a minimum increase, for example always at least 1% per year.
- CPI indexation with a maximum (cap), for example never more than 5% per year.
- A fixed annual increase instead of CPI linkage, less common but sometimes used.
Effect over the lease term
With average indexation of 2.5% per year, a rent of €80,000 rises to over €90,500 after five years. In years of higher inflation, the impact can be greater, particularly if the clause contains no cap. Both parties would be well advised to calculate this scenario in advance.
What tenants want to agree
Tenants often request a cap on annual indexation to keep rental costs predictable, particularly for longer lease terms. Landlords, by contrast, often want a minimum increase so that rental income keeps pace in real terms with costs such as maintenance and insurance.
Do not confuse indexation with rent review
Indexation is the annual adjustment during the lease term; rent review (Article 7:303 of the Dutch Civil Code) is a separate procedure through which the rent can be adjusted after the initial lease term to reflect market rent based on comparable business premises.
Frequently asked questions
Can indexation also result in a rent reduction?
In theory, yes, if the CPI falls, but in practice this rarely occurs and many clauses include a floor of 0%.
Is indexation compulsory in a lease?
No, but it is so common that its absence usually works to the landlord's disadvantage over a longer lease term.