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12
dTZ | In Situ
France
•
There is a short term, 24 month lease
called ‘bail dérogatoire’, and you
should ensure that you are clear about
the implications of this contract before
signing the lease; if you do not leave at
the end of the 24 months and continue
to occupy the premises without having
agreed anything with the landlord, you
will automatically enter into a regular
3/6/9 year lease, which means that
your next exit can only take place in
the third year.
OperATIOnAl
•
reinstatement/dilapidations issues
can be a source of conflict in France,
leading to long and costly legal
procedures as there are no laws
governing the issues.
reAl eSTATe
•
If a tenant visits a building with a
landlord’s agent and then takes
space in that building, the landlord’s
agent can ask for a 15% fee even if no
appointment is made and no advice
has been provided: this is called the
paternity rule
•
Beware of conflicts of interest – real
estate brokers often get commission
from landlords even when they are
representing the tenant
•
The office tax, specific to the greater
Paris region, whilst stable for the past
10 years, increases on a yearly basis
(€17.48 per sq m in 2013, while in 2012
it was €16.71 per sq m).
ANGelA tAN
siNGAPoRe
Head of occupier services,
se Asia
+65 6393 2333
JAmes bRAdley
sPAiN
director, Global corporate
services
+34 91 770 9600
JeNNifeR debbAs
fRANce
director, Global corporate
services
+ 33 1 49 64 48 67
leGISlATIve
•
each French company with 50 or more
employees has an employee works
counsel; management must consult
with their works counsel on each move,
and need their formal opinion (which
could take two to three months, since
the process is guided by a detailed
agenda) prior to signing a new location
lease; the works counsel cannot veto
a move, but can strongly delay a
relocation project
•
Lease agreements are controlled
by statute making local legal
representation advisable
•
Since January 2012 a new rent index
called ILAT has come into use; it does
not formally replace the Icc index, but
it is advisable to use it in new leases
due to its lower volatility
•
By 2020 landlords will have to show
that the energy consumption of their
buildings has decreased; to achieve
these savings many Grade B buildings
will have to go through renovation
works; part of the cost of these works
can be charged onto the tenant;
this risk can be reduced through an
agreement clearly mentioned in the
lease
•
each leasing contract over 2,000 sq m
has to include a ‘green’ appendix
describing how the landlord and tenant
will work together to upgrade the
energy consumption of their building:
measurement of energy consumption,
regular meetings to decide the plan
for renovation / refurbishment should
be mentioned; from 14 July 2013, the
entire leasing contract should include
this environmental appendix
•
Transaction fees are subject to VAT
(currently 19.6%).
