You submitted your renewal request on time. The landlord responds that he does not wish to renew. What are your rights?
The Commercial Lease Act protects you as a commercial tenant through a closed list of grounds for refusal. The landlord cannot simply refuse — and if he does so without a valid reason, you are entitled to substantial compensation.
The six grounds for refusal under Article 16
Article 16 of the Commercial Lease Act exhaustively lists when the landlord may refuse renewal. Outside these six grounds, a refusal is irregular.
1. Personal and actual use by the landlord. The landlord wants to use the premises himself, or have them used by a family member or a company in which he is a director.
2. A new purpose that excludes any commercial activity. For example, converting the premises into a private residence or office space without client visits.
3. Rebuilding of the premises. The landlord wants to demolish and rebuild the premises. The Justice of the Peace of Leuven (Vred. Leuven 24 June 2021) clarified what falls under "rebuilding": any renovation preceded by demolition, affecting the shell of the premises, and whose costs exceed three years' rent. Those costs may be interpreted broadly, including study bureau, architect, permits, VAT, carpentry, sanitary works, heating and roof replacement.
4. Serious breaches by the tenant. Serious breaches such as prolonged non-payment, damage to the premises, or significant changes in operation without consent. The Justice of the Peace of Geraardsbergen (Vred. Geraardsbergen 25 October 2023) confirmed that breaches which are not serious enough to terminate the lease may nevertheless suffice to prevent renewal.
5. A higher offer from a third party. Another candidate tenant offers a higher rent. As a tenant you can match that higher bid via the procedure under Articles 21-23 of the Commercial Lease Act.
6. Absence of a legitimate interest on the tenant's part. You have already started a similar business nearby or already have another premises for the same activity.
What if the landlord does not carry out his stated motive?
An important protective rule: if the landlord invokes a motive but does not implement it within six months and does not carry it out for at least two years, you are entitled to an eviction indemnity of three years' rent, possibly increased by additional damages (Article 25, 3° of the Commercial Lease Act).
The Court of Cassation clarified in 2021 that the one-year period to claim this indemnity begins to run on the day the non-compliant works are completed (Cass. 3 June 2021, AR C.20.0560.F). Even if the premises were delivered "shell" to a new tenant, the right to compensation remains.
Concrete example: your landlord refuses renewal because he wants to "rebuild". Two years later, the premises are still as they were, or were re-let without substantial works. You can then claim an eviction indemnity of three years' rent, plus possibly additional damages if you can prove that your actual loss was greater.
Not every delay constitutes non-realisation. A court has ruled that the scale and complexity of a project, with numerous preparatory acts, can justify the landlord's timely execution of his intent, even if the works themselves are not yet visible (Court of First Instance East Flanders, Ghent division, 3 September 2021).
The serious offer: often a lost battle
Your renewal request must state all the conditions under which you are willing to conclude the new lease agreement — including the rent. That offer must be serious.
What is a serious offer? The court in Brussels ruled in 2022 that a request against a ridiculous rent, given the rental value advised by a court-appointed expert, is null and void (Court of First Instance Brussels 7 July 2022). The Court of Cassation confirmed in 2023 that a fictitious or insignificant rent does not comply with Article 14 of the Commercial Lease Act (Cass. 13 October 2023, AR C.23.0108.F).
Practical tip: seek assistance from a lawyer or real estate expert to propose a realistic rent. An offer that is too low can undermine your entire application — and you then lose your right to renewal.
Request by one tenant among several tenants
Are you a co-tenant with a company or another natural person? Then every tenant must sign the renewal request. A request submitted by only one of two tenants is invalid (Vred. Wavre 3 August 2021, Court of First Instance Walloon Brabant 15 March 2023).
A landlord who waits until the very last days of his response period to invoke such an irregularity does not commit an abuse of rights (Court of First Instance Walloon Brabant 15 March 2023). He does not have to give the tenant the opportunity to regularise the request. The practical lesson: have your request drafted by a specialist and make sure all tenants are correctly listed and sign.
Waiver of the right of refusal
May the landlord waive his right to refuse renewal in advance? Yes, this is possible. But he cannot waive in advance his right to discuss the conditions, in particular the rent (Vred. Geraardsbergen 25 October 2023). A clause that automatically extends the lease on the same conditions as soon as the tenant requests it is null and void.
Concretely this means: even if your lease agreement promises that you can renew without problems, the landlord always has the right to negotiate the rent — possibly via the Justice of the Peace.
When should you call in Reius?
For most traders, a refusal of lease renewal is an existential threat to their business. The legal arguments are complex and the deadlines short. Reius assists tenants in the following situations:
Preparation and drafting of a valid renewal request
Assessment of whether a landlord's refusal ground is genuinely justified
Proceedings before the Justice of the Peace to contest the refusal
Calculation and recovery of eviction indemnity when the motive is not realised
Negotiation with the landlord on an amicable settlement
Our intervention is best started as soon as you receive a first signal of refusal — not only when the deadline to respond has almost expired.
Would you like a complete overview of your position as commercial tenant or landlord? Read our guide on rights and obligations under commercial lease.