Can a landlord terminate a long-term lease agreement for commercial space, catering or retail premises solely in order to obtain a higher rent? The Supreme Court says: no!

In the commercial property market, rents and the demand for certain conditions are constantly changing. Both tenants and landlords may eventually ask themselves: can a lease be terminated because the rent is no longer in line with market conditions?

In its ruling of 19 December 2025, the Supreme Court drew clear boundaries on this issue. A landlord may not terminate a lease agreement if the sole purpose of the termination is to achieve a higher rent. This is important information for both tenants and landlords: tenants know where they stand in terms of protection, and landlords know which route they may and may not take.

What was going on?

In this case, the landlord wanted to terminate the lease agreement for a supermarket. The agreement had been in place for more than thirty years for an indefinite period, and an external party had expressed interest in renting the property at a rent that was approximately 60 to 70 percent higher. Normally, termination is only possible on specific grounds as specified in the law, or – after a period of time – on the basis of additional grounds and a weighing of interests. The landlord's interest seemed obvious: to achieve a significantly higher rent. However, the Supreme Court ruled that termination is not permitted solely for the purpose of achieving a higher rent.

Why is that not allowed?

The law distinguishes between (i) terminating a lease and (ii) adjusting the rent.

• Termination is only possible on specific legal grounds, such as urgent personal use (renovation and self-use), poor management by the tenant, implementation of a zoning plan or refusal of a reasonable offer. [1] And by weighing up the interests of the landlord and tenant. 
• There is a separate procedure for adjusting the rent: rent review on the basis of the so-called “303 procedure” [2] makes it possible to have the rent determined by the court on the basis of rents for comparable commercial premises in the area.

In short: terminating a lease solely to achieve a higher rent will not succeed. Anyone who wants a higher rent must use the statutory review procedure.

What does this potentially mean for you?

For landlords, this means that it is important to think ahead when entering into new contracts. If flexibility is important in the future, agreements on periodic reviews or market rent may be considered. Deviating from the statutory regulations is sometimes possible, but often only with court approval. The 303 procedure is the appropriate route for achieving a higher rent.
This ruling provides tenants with additional clarity: their position remains strong, even in the case of very long-term tenancies. A landlord cannot simply terminate the tenancy agreement in order to gain a financial advantage. If a landlord wishes to revise the rent, this must be done through the appropriate procedure and with an objective assessment of comparable properties.

Questions about your situation?

Whether you are a tenant or a landlord, it is important to know where you stand. Do you want to make your lease future-proof? Or are you wondering how a rent review works via the 303 procedure? Feel free to contact us – we are happy to help.

1. The grounds are set out in Article: This last ground will not succeed if the new lease agreement is only submitted in order to obtain a higher rent.

2. The term ‘303 procedure’ is derived from the section of the law in which the procedure is regulated, namely Section 7:303 of the Civil Code.