Commercial Real Estate Lease Agreement for Switzerland

Commercial Real Estate Lease Agreement Template for Switzerland

A comprehensive legal document governed by Swiss law that establishes the terms and conditions for leasing commercial real estate property in Switzerland. This agreement is structured in accordance with the Swiss Code of Obligations (OR/CO) and relevant cantonal laws, detailing the rights and obligations of both landlord and tenant. It covers essential elements including rent payments, maintenance responsibilities, permitted use, insurance requirements, and termination conditions, while incorporating specific Swiss legal requirements such as notice periods and deposit protections. The document ensures compliance with both federal and cantonal regulations governing commercial property leases.

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What is a Commercial Real Estate Lease Agreement?

The Commercial Real Estate Lease Agreement is a crucial document used when a business entity seeks to lease commercial property in Switzerland. It serves as the primary legal instrument governing the relationship between commercial landlords and tenants, structured in compliance with the Swiss Code of Obligations and cantonal regulations. This document is essential for businesses establishing or expanding their physical presence in Switzerland, whether for retail, office, industrial, or other commercial purposes. It includes detailed provisions for rent calculation, maintenance obligations, permitted modifications, insurance requirements, and termination conditions, while incorporating specific Swiss legal requirements such as security deposit regulations and notice periods. The agreement must account for both federal and cantonal requirements, making it a sophisticated legal instrument that requires careful consideration of local commercial property laws and practices.

What sections should be included in a Commercial Real Estate Lease Agreement?

1. Parties: Identification of landlord and tenant with full legal details including company registration numbers and addresses

2. Background: Context of the lease agreement and brief description of the property

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Description: Detailed description of the leased premises including exact location, size, and included facilities

5. Term and Commencement: Duration of the lease, commencement date, and any renewal options

6. Rent and Other Payments: Base rent, payment schedule, security deposit, and other financial obligations

7. Service Charges and Operating Costs: Breakdown of additional costs, utilities, and common area maintenance charges

8. Use of Premises: Permitted use of the property and any restrictions

9. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs

10. Insurance Requirements: Required insurance coverage for both landlord and tenant

11. Alterations and Improvements: Provisions regarding modifications to the premises

12. Landlord's Obligations: Specific duties and responsibilities of the landlord

13. Tenant's Obligations: Specific duties and responsibilities of the tenant

14. Assignment and Subletting: Conditions under which the tenant may assign or sublet the premises

15. Default and Remedies: Events of default and corresponding remedies

16. Termination: Conditions and procedures for lease termination

17. Governing Law and Jurisdiction: Specification of Swiss law application and jurisdiction

18. Notices: Process and requirements for formal communications between parties

What sections are optional to include in a Commercial Real Estate Lease Agreement?

1. Environmental Provisions: Required for properties where environmental compliance is crucial or where specific environmental risks exist

2. Parking Facilities: Include when parking spaces are part of the lease

3. Signage Rights: Include when external or internal signage rights are granted to the tenant

4. Extension Options: Include when specific renewal or extension terms are offered

5. Break Clause: Include when early termination options are available to either party

6. Fair Rent Review: Include when periodic rent reviews are part of the agreement

7. Building Management Rules: Include for properties in multi-tenant buildings or complexes

8. Exclusive Use Rights: Include when tenant is granted exclusive rights for certain business activities in the building/area

9. Force Majeure: Include specific provisions for extraordinary circumstances affecting lease obligations

What schedules should be included in a Commercial Real Estate Lease Agreement?

1. Floor Plans: Detailed plans showing the leased premises and common areas

2. Inventory: List of fixtures, fittings, and equipment included in the lease

3. Service Charge Budget: Detailed breakdown of estimated service charges and operating costs

4. Building Rules and Regulations: Specific rules governing the use of the building and common areas

5. Fit-out Specifications: Technical specifications for any permitted tenant improvements

6. Maintenance Schedule: Detailed breakdown of maintenance responsibilities between parties

7. Insurance Requirements: Specific details of required insurance coverage

8. Environmental Compliance Certificate: Documentation of environmental compliance where required

9. Handover Protocol: Template for documenting the condition of premises at handover

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Switzerland

Publisher

Genie AI

Cost

Free to use

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