The parties may choose a

Practical application:

This case law confirms you can include a clause in the original lease setting an advance method for the renewed rent (e.g., a fixed increase or indexation formula). Draft the new lease now with a clear formula, such as linking the renewed rent to the commercial rent index (ILC) plus 5%, to lock in certainty and prevent costly litigation.

Practical application:

Relying on this decision, you can negotiate a predetermined rent revision mechanism when signing the lease. For instance, agree that the renewed rent will be capped at 110% of the current rent or tied to a fixed annual 2% compound increase. This provides budgeting certainty and protects against market spikes.

Practical application:

Because this case law upholds pre-agreed renewal terms, you must scrutinise that clause. If it grants the tenant a below-market automatic renewal at a slight increase, your future income is capped. Instruct a French property lawyer to verify the clause’s legality and assess its financial impact before signing the purchase deed.