COMMERCIAL REAL ESTATE GUIDE

In addition to residential real estate, our team also offers you its services in commercial real estate. This market includes all real estate assets allocated for commercial and professional use (shops, restaurants, warehouses, factories, offices, etc.).

Our team, with its strong legal, commercial and accounting skills, will assist you throughout your project, from the creation of your business to the move into your premises, and will allow you to take advantage of its extensive network within the local economic fabric as well as with the various administrations.

Several possibilities, depending on the type of activity you exercise, may be available to you in France, and more particularly on the French Riviera.


If it’s a commercial or industry activity :


•   Acquisition of commercial/industrial premises. The purchase process is classic, you just have to be vigilant about the regulations in force in the building and in the Principality concerning the exercise of the activity planned.

•   Rental of premises. In this case, there are several possibilities:

 -   With commercial/industrial property, the lease will be subject to Law (Articles L145-1 and following of the Commercial Code), concerning leases for commercial/industrial or artisanal use, concluded for a period of 3,6,9 years. A key money will certainly be requested before entering into the premises, unless the entry takes place as a result of taking over the leasehold or after having bought the business of the occupier.

 -  Without the commercial/industrial property:

       °  A tenancy at will, for a period of less than 3 years, with the obligation for the tenant to leave at the end of this period because beyond the commercial property would be acquired and the contract requalified as a lease. This type of lease is subject to the Law (Article L145-4 of the Commercial Code).
       °  A licence : the contract, for a fixed term, is governed by the Law n°546 of 26/06/1951 and is established with the operator of the business, subject to the authorization of the owner of the premises. It can be transferred in part or in whole.


If it is a liberal or professional activity whose income is taxed in the category of non-commercial profits (BNC):

•    Acquisition of professional premises. The purchase process is classic, you simply have to be vigilant about the regulations in force in the building and in the municipality concerned.

•    Rental of premises. In this case, there are several possibilities:

 -   Office lease. The tenant may, to this extent, receive a clientele in the rented premises where, otherwise, no goods are delivered or stored, and no commercial neither industrial activity may be carried out. The term is for a minimum of six years and may be renewed tacitly or not. The tenant may terminate the contract at any time by giving a 6 months' notice, whereas the landlord may only terminate the contract on expiry with 6 months' notice. The rent, charges and security deposit are freely fixed by the parties.

 -   Mixed-use lease. This is a lease for a property that you will occupy both as a residence and for the exercise of a professional activity. A mixed-use lease must comply with the rules set out in law n°89-462 of 6 July 1989. It is for a minimum of 3 years when the lessor is a natural person and for a minimum of 6 years when the lessor is a legal entity (with the exception of family-owned civil companies). The tenant may terminate the contract at any time by giving a three months' notice, whereas the lessor may terminate the contract only on expiry, with six months' notice. The rent and the security deposit are freely fixed by the parties but not the charges. The lease is tacitly renewed.



The main current rate


•    Sale of leasehold rights:

 -   Notary's fees + administrative costs (they represent between 2 and 3% of the price).

 -  Registration fees are 3% if the amount of the transfer is between €23,000 and €200,000, and 5% if the amount is over €200,000. Registration fees are in most cases payable by the purchaser.

 -  Costs of advertising the transfer in a Journal d'Annonces Légales.


•    Transfer of business:

 -   Notary fees + administrative costs (they represent between 2 and 3% of the price)

 -   Registration fees are 3% if the amount of the transfer is between €23,000 and €200,000, and 5% if the amount exceeds €200,000. In principle, registration fees are payable by the purchaser. An allowance of €300,000 is possible on the business's value when the buyer is either a close relative of the seller or has held a permanent contract for at least two years and the buyer undertakes to continue the business for at least five years.

 -   Costs of advertising the transfer in a Journal d'Annonces Légales.

•   For the purchase of commercial premises or walls, the classic rates will be applied. The acquisition costs represent approximately 7 to 8% of the property's value.



In addition to these costs, an agency fee will be charged:


•   For the acquisition of premises or the purchase of a business or leasehold rights, the buyer will have to pay the agency fee corresponding to 10% including VAT.

•   For the rental of commercial and professional premises, an agency commission of 12% (including VAT) will be calculated on the annual rent excluding charges.

Our team is at your disposal to help you realise your professional project and will give you the benefit of its expertise in this area.