Sweden
REAL ESTATE
•
The landlord is responsible for the fit out of rented premises
•
The cost for the fit out is included in the asking rent
•
Tenant improvements and specifics above the base fit out are
typically capitalised into the rent over the rental period
•
The tenant pays for security, IT/communications,
AV-equipment as well as for the physical move and furnishing
•
In multi-tenanted buildings the tenant’s commitment is
measured on the basis of net lettable space — LOA (excluding
stairs, lifts, etc.), rent is not charged for the common areas
•
At the end of the lease period the tenant is expected to
reinstate the rented premises back to the condition in which it
was rented, with allowance for reasonable wear and tear.
OPERATIONAL
•
The standard lease period is 3-5 years for existing buildings,
although longer terms, as well as shorter, can be agreed by
exception
•
Indexation and property tax is not applicable for a lease
agreement that is shorter than three years
•
Besides rent, the tenant normally pays for heating and cooling
and property tax
•
It is common for a landlord to demand a rental guarantee —
a 6-12 month bank or parent company guarantee is usually
required.
LEGISLATIVE
•
The vast majority of commercial leases are drawn up on a
standard lease form; the standard lease (Hyreskontrakt) is
four pages long and is relatively straightforward, containing
key information on the property, the parties and the terms
•
The landlord and tenant agree upon any appropriate
amendments to the standard form and sign; in most cases
external legal input to the process is minimal, if at all; tenants
in Sweden enjoy a high level of protection from the legal
system. In broad terms, at the end of the rental period the
tenant has an automatic right to renew the agreement i.e.
indirect tenancy
•
The rent act is mandatory, i.e. protecting the weaker party or
tenant
•
Both the landlord and the tenant can terminate a lease
agreement at expiry to vacate or renegotiate; for
renegotiation, the new conditions must be specified in the
termination agreement.
ANDREAS KJELLBOM
Consultant, Occupier Services
+46 8 671 34 67
DTZ | In Situ 31
