Termination of Commercial Leases – Rights of Tenants and Landlords

Last updated: April 2026 · Incorporates the BEG IV reform (text form instead of written form since 01.01.2025/2026)

The termination of a commercial lease agreement ends the tenancy of premises used for commercial or professional purposes. It can be ordinary (with statutory or contractual notice periods), extraordinary and without notice (for an important reason according to § 543 of the German Civil Code (BGB)), or be exercised through a special right of termination. Unlike residential tenancy law, there is no statutory tenant protection in commercial tenancy law – with far-reaching consequences for both parties.

Your hairdressing salon has been operating at the same location for twelve years. Then, suddenly, you receive a notice of termination from the landlord in the post – they want to renovate. Or you rent a warehouse to a transport company that hasn't paid rent for four months and isn't responding to your letters. In both cases, a lot of money is involved. A commercial lease agreement for ten years with a monthly rent of €4,000 has a total volume of €480,000. Errors in the termination – on both sides – can be life-threatening.

This guide explains the current legal situation, including the form reform of the Fourth Bureaucracy Relief Act (BEG IV), which fully came into effect in January 2026. It is aimed at commercial tenants and landlords alike and takes into account the case law of the Cologne courts and the Federal Court of Justice.

Note: This article is for general information only and does not replace individual legal advice. Commercial tenancy law matters are highly dependent on individual cases. Have your specific situation examined by a specialist lawyer for tenancy law before taking action.

At a glance – the six key points:

1. In commercial tenancy law, there is no statutory tenant protection. Landlords and tenants meet on equal footing – this means more freedom, but also more risk.
2. The ordinary cancellation an indefinite contract does not require a reason, but compliance with the notice period (legally: 6 months at the end of the quarter, § 580a para. 2 BGB).
3. Extraordinary termination requires an important reason within the meaning of § 543 of the German Civil Code (BGB) and generally requires prior Warning letter.
4. From 01/01/2026, the text form will suffice instead of the written form for old contracts too (§§ 578 para. 1 sentence 2, 550 BGB n.F.). The „written form termination“ as an exit strategy has therefore practically become obsolete.
5. The grace period regulation of § 569 para. 3 no. 2 BGB applies not in commercial tenancy agreements – a back payment after notice of termination has been received cures nothing.
6. Unjustified immediate terminations can lead to massive damages – the consequential damage of termination can become six figures in long-term contracts.

Commercial lease or residential lease – why the distinction matters so much

The distinction sounds abstract, but it has consequences that can decide thousands of euros. Those who fall under residential tenancy law enjoy extensive legal protection: termination restrictions, social clauses, rent increase caps. Commercial tenants do not have this protection. In return, they have greater contractual freedom – which can be both good and bad, depending on which side you are on.

Whether a rental agreement is considered commercial does not depend on the title of the contract. The heading „Commercial Lease Agreement“ is merely an indication. What is decisive is what was agreed upon at the time the contract was concluded Purpose of use The premises. If commercial or freelance activity is predominantly carried out there – a craft business, a retail shop, a restaurant, a law firm, a doctor's surgery – then a commercial lease agreement is in place. A detailed overview of the specifics of commercial leases Find this in our separate article.

Mixed-use leases – when commercial and private use overlap

If a unit is used as both a dwelling and an office or shop, it depends on which use predominates. The courts examine this based on the content of the contract and the actual use. In cases of doubt – if the commercial use does not clearly dominate – the courts will assume a residential tenancy in favour of the tenant. However, the Berlin Court of Appeal has clarified that in cases of Leases with legal entities as a general rule, commercial lease law is to be assumed, unless residential tenancy law has been expressly agreed upon.

This classification has massive consequences for termination: in residential tenancy law, landlords require a reason (personal use, utilisation, breach of contract). In commercial tenancy law, this is not the case.

Ordinary termination – the standard procedure for indefinite contracts

Ordinary termination is the easiest way to end a commercial lease with an indefinite term. Neither the landlord nor the tenant needs a specific reason for this. In commercial tenancy law, the intention to end the tenancy is sufficient – provided that the form and notice period are correct.

Notice periods according to § 580a para. 2 BGB

Unless the rental agreement specifies otherwise, the statutory notice period applies: notice must be given no later than third working day of a calendar quarter to the end of next calendar quarter to be explained.

Specifically: If you wish to resign on 30th June, the notice of resignation must be received by the recipient no later than the 3rd working day of January. When calculating the three-day period, Saturday is generally counted as a working day (Federal Court of Justice, judgment of 27.04.2005, VIII ZR 206/04). However, if the last day of this grace period falls on a Saturday, the period is extended to the next working day – i.e. Monday. Sundays and public holidays also shift the deadline according to the general rule of § 193 BGB.

Second example: You want to resign on 30th September. For this to be effective, the notice of termination must be received by the 3rd working day of July. If 1st July falls on a Thursday, then Friday 2nd and Saturday 3rd July are the following working days – so the notice of termination would have to have been received by Saturday 3rd July at the latest.

Contractual deviations are permissible and common in commercial tenancy law. Shorter notice periods (e.g. three months) as well as longer ones (e.g. twelve months at the end of the year) are possible. Check your lease agreement carefully. The notice period applies equally to both parties.

Fixed-term contracts: ordinary termination excluded

With fixed-term commercial leases – and these are the majority in practice – neither the landlord nor the tenant can terminate the contract with ordinary notice. The contract ends automatically upon expiry of the agreed term. The only ways out: an extraordinary termination for good cause, a special right of termination, or a mutual agreement Cancellation agreement. An exception is made according to § 544 BGB for contracts concluded for life or for a period of more than 30 years – these can be validly terminated after 30 years with the statutory notice period.

Extension clause and option clause – a common pitfall

Many commercial leases provide that the contract automatically renews if not objected to in a timely manner. Precision is necessary here, as there are two different mechanisms:

The Extension clause automatically renews, provided neither party objects in due time. If one side misses the objection deadline, the contract continues for the agreed term – often one to five years. Option clause In contrast, an active declaration is required: The beneficiary (usually the tenant) must expressly request the extension within the deadline. Without this declaration, the contract ends.

In addition, § 545 BGB applies: If the tenant continues to use the rented property after the contract has expired and the landlord does not object within two weeks, the tenancy is deemed to have been extended indefinitely. However, this tacit extension can be contractually excluded in commercial lease agreements – and this is the case in most standard agreements.

Practical tip: Schedule the cancellation period early – ideally with a double reminder, twelve and six months before the deadline. The consequences of missing it can mean years of additional contract commitment.

From our consulting practice:

A client from Cologne's Südstadt, who ran a launderette, came to me a few weeks before the supposed end of his contract because he wanted to give up his business premises for economic reasons. Upon examination of the lease agreement, it turned out that the commercial tenancy had already automatically extended by a further five years months earlier, because the contractually agreed period for objection had been missed. The client initially assumed he could simply „terminate properly“. In reality, however, a fixed term of commitment still existed. I then thoroughly examined the contractual situation, relieved the economic pressure from the ongoing vacancy costs, and negotiated a termination agreement with the landlord in exchange for a calculable severance payment. The most important lesson from this case: one should note down all deadlines from ongoing contracts and maintain a deadline calendar. 

In full effect from 2026: Text form instead of written form – the BEG-IV reform

Until the end of 2024, a rule was in place that created enormous potential for disputes in practice: commercial lease agreements with a fixed term of more than one year had to comply with the written form requirements of §§ 578, 550, 126 of the German Civil Code (BGB). This involved handwritten signatures from both parties, the integrity of the contract document, and correct references to any annexes and addenda. The requirements were stringent, and despite some relaxation by the Federal Court of Justice (BGH), the error rate remained significant.

The legal consequence of a breach of the written form requirement: The contract was deemed to have been concluded for an indefinite period and could be terminated with the statutory notice period – even if a ten-year fixed term had actually been agreed. This so-called „written form termination“ was used in practice by tenants and landlords as a tactical instrument to get out of long-term contracts prematurely. How complex the issue of written form can be is shown by our article on Written form for the extension of commercial leases as well as our contribution to the question of when the Invoking a lack of written form can be contrary to good faith.

The Fourth Bureaucracy Relief Act (BEG IV) has fundamentally changed this practice. With the amendment of § 550 BGB in conjunction with § 578 (1) sentence 2 BGB n.F., the following applies:

• From 01.01.2025: For all newly concluded or amended commercial lease agreements, the text form (§ 126b German Civil Code) is sufficient. A legible declaration on a permanent data carrier – email, PDF, scan – is enough. A handwritten signature is no longer legally required.
• As of 01/01/2026: The written form also applies to all existing contracts concluded before 1 January 2025. The one-year transitional period has expired.

The written form of termination has largely been eliminated as a strategic exit option for the contracting parties. Those who have relied on a deficiency in written form for their exit strategy now need a different basis.

Practical tip: Check your rental agreement for a contractual Written form clause. Even if the law now only requires written form, parties can contractually agree on stricter formal requirements. The legal consequences of such clauses after 01.01.2026 – particularly whether a breach leads to invalidity or merely ordinary termination – have not yet been conclusively clarified. There is an urgent need for advice here.

From my consulting practice:

A commercial tenant (restaurant) had originally relied on being able to terminate a long-term lease prematurely due to a lack of written form. During my audit, it became apparent that this strategy was unfortunately no longer possible due to the new legal regulation. Instead of relying on a previously frequently used formal objection, I reassessed the contractual relationship and developed alternative ways of exiting: in particular, the examination of special termination rights, the preparation of a resilient deficiency claim and, in parallel, the negotiation of a commercially viable cancellation agreement. The case shows very clearly that, following the BEG-IV reform, old standard strategies no longer work without further ado and that the termination of the contract must now be based much more on content, breaches of duty and negotiated solutions. Even if this can mean more effort and a greater loss for the tenant, the approach can still be worthwhile. 

Extraordinary termination without notice – grounds and requirements

Extraordinary termination under Section 543 of the German Civil Code (BGB) immediately ends the tenancy without prior notice. The law requires an „important reason“ for this: the continuation of the tenancy must be unreasonable for the terminating party, taking into account all circumstances and weighing the interests of both parties. This right applies to both parties and cannot be excluded by contract.

Reasons for immediate termination by the landlord

Default of payment is by far the most common reason. The threshold is defined by § 543 (2) No. 3 of the German Civil Code (BGB): The landlord can terminate without notice if the tenant is in default with rent payments for two consecutive dates, either in full or by a not insignificant amount, or if rent arrears have accumulated over a period of more than two dates, reaching a total of two months' rent. That also continued late rent payments the BGH has also confirmed that an immediate termination can be justified.

One point that regularly surprises commercial tenants: The grace period provision of § 569 para. 3 no. 2 BGB does not apply to commercial lease agreements. In residential tenancy law, a tenant can retroactively „cure“ an immediate termination due to payment arrears by settling the outstanding amounts within two months of the eviction lawsuit being served. Commercial tenants do not have this option. As soon as the immediate termination is received, the tenancy agreement is terminated – even if the tenant transfers all arrears the next day.

Unauthorised use by a third party – about one Commercial subletting without the landlord's consent – also constitutes grounds for termination (§ 543 Para. 2 No. 2 BGB).

Material breach of contract can take many forms: neglect of the rented property, use contrary to the contract (e.g., operating a restaurant in premises rented as an office), or breaches of a contractually agreed operating obligation. In a judgment dated 29.04.1992 (XII ZR 221/90), the Federal Court of Justice (BGH) clarified that a breach of the operating obligation can entitle the landlord to terminate the contract without notice.

Reasons for extraordinary termination by the tenant

The tenant can also invoke Section 543 of the German Civil Code (BGB). In practice, this happens less often – the scarce availability of commercial space in conurbations leads commercial tenants to tolerate some breaches of contract by the landlord more readily. Nevertheless, there are clear scenarios:

Loss of use or restriction of use (§ 543 para. 2 no. 1 BGB): If the landlord deprives the tenant of the contractual use of the rented premises, in whole or in part. In a case that the OLG Düsseldorf ruled, the landlord had blocked access to a commercial hall used as a paint shop with lorries for weeks. The court upheld the tenant's immediate termination of the lease.

Defects in the rented property Severe defects – significant damp, mould infestation, heating failure, building code usage restrictions or significant Minimum surfaces – can justify an immediate termination if the landlord fails to remedy the situation despite being given a deadline. However, before terminating, the tenant is initially entitled to a rent reduction according to § 536 BGB as well as a right of retention of rent. These preliminary steps should be taken before termination is considered as a last resort.

Breach of competition protection Even without an express contractual clause, there is an inherent entitlement to competition protection in favour of the commercial tenant. We have in a detailed contribution explained, when a breach of a non-competition clause can justify the tenant's immediate termination. Furthermore, the BGH decided on 26.02.2020 (XII ZR 51/19) that the standard contract combination of an operational obligation with assortment binding and the simultaneous exclusion of non-competition protection disadvantage the tenant unreasonably and is invalid.

Deliberately incorrect utility bill: In a judgment dated 06/10/2021 (XII ZR 11/20), the Federal Court of Justice (BGH) upheld a tenant's extraordinary notice of termination, which was based on intentionally incorrect ancillary cost statements. If a landlord insists on a demonstrably false statement in a legally indefensible manner, despite justified objections, this can justify an extraordinary notice of termination – and in cases of proven intent to deceive, without prior warning.

The warning letter – mandatory requirement and frequent source of errors

Fundamentally, the party terminating the contract must warn the contractual partner before terminating without notice and set a reasonable deadline for rectification (§ 543 (3) BGB). The warning must include three elements: the specific breach of contract must be named, a deadline for rectification must be set, and termination must be threatened as a consequence. If any of these elements are missing, the subsequent termination can be challenged.

Exceptions: In the case of termination due to payment arrears under Section 543 (2) No. 3 of the German Civil Code (BGB), the law does not explicitly require a prior warning. Similarly, the obligation to give a warning is waived if setting a deadline clearly promises no success.

Practical tip: Never issue an immediate termination without also stating a conditional termination to the earliest possible date in the same letter. If a court does not recognise the important reason, the ordinary termination will at least apply – and you will not be left without any legal basis.

From our consulting practice:

A landlord (the tenant was a limited liability company running a pet shop) instructed me only after he had already issued an immediate termination. The trigger for this was repeated breaches of contract by the tenant and considerable friction during the ongoing tenancy. However, on reviewing the documents, it became apparent that the preceding warning notice was once again too vaguely worded: the specific breach of contract was not clearly described, a definite deadline for rectification was missing, and the termination had not been clearly threatened. Due to the poor wording of the termination, the subsequent immediate termination was legally challengeable. The client lost valuable time, had to restart the proceedings, and bore a significant cost risk. The case demonstrates that it is not escalation but thorough preparation that is decisive: a good warning notice is often the most important building block for a subsequent termination. Therefore, the greatest care must be exercised when drafting the warning notice. 

Ordinary and extraordinary termination in comparison

Feature	Ordinary cancellation	Extraordinary termination (without notice)
Legal basis	§ 580a para. 2 German Civil Code, contract	§ 543 BGB
Reason required?	No	Yes – „important reason“
Cancellation period	Legally 6 months to the end of the quarter; otherwise possible by contract	None – immediate effect
With a fixed-term contract?	Not possible (Exception: after 30 years, § 544 BGB)	Possible – cannot be excluded by contract
Is a warning necessary?	No	In principle, yes; exception in case of payment default
Main risk	First default, formal error	Consequential damages arising from an ineffective termination

Special termination rights – ways out of fixed-term contracts

In addition to ordinary and extraordinary termination, the law provides for special termination rights in specific situations:

Compulsory auction (§ 57a ZVG): If ownership of a commercial property changes through compulsory auction, the purchaser has a special right of termination – even in the case of fixed-term contracts.

Change of ownership due to sale: Here, the principle of „sale does not break lease“ applies (§ 566 BGB). The buyer enters into the existing lease agreement by operation of law. A mere change of ownership does not entitle either the new landlord or the tenant to terminate the lease. What specific questions arise in the Contractual design of landlord change clauses have been explained separately.

Tenant insolvency Insolvency alone is not grounds for termination. After the insolvency application has been filed, the landlord can no longer terminate the lease due to rent arrears that arose before the application. The insolvency administrator has the option, under Section 109 of the InsO (Insolvency Code), to terminate the rental agreement with a notice period of three months to the end of the month – regardless of any contractually agreed fixed term.

Death of the tenant (§ 580 BGB): The tenancy does not automatically end. Both the heirs and the landlord can terminate the tenancy with the statutory notice period if the tenant dies.

Cessation of the basis of the transaction (§ 313 BGB): A last resort, which has been increasingly discussed since the Corona pandemic. Officially ordered business closures can represent a disruption of the basis of the contract. However, § 313 BGB first requires an adjustment of the contract before termination can be considered. Purely economic difficulties – sales declines, changed market conditions – are part of entrepreneurial risk. Disappointed expectation of tenant's win Alone does not entitle termination.

Formal requirements for termination – checklist

Even a substantively justified termination is ineffective if it fails due to formal defects. Check these eight points before sending:

1. Correct sender: All landlords must give notice – in the case of a GbR, all partners; in the case of a GmbH, the managing director with the power of representation. If one acts Agent like a solicitor, the original power of attorney must be attached. If it is missing, the recipient may reject the termination immediately (§ 174 BGB).
2. Correct recipient The notice of termination must be addressed to all tenants. If a limited liability company (GmbH) is the tenant, it should be sent to the managing director. If there are multiple individuals as tenants, each one must receive the notice of termination.
3. Form: Legally, the text form (§ 126b BGB) has been sufficient since BEG IV. However, check whether your rental agreement contains a contractual written form clause that imposes further requirements.
4. Unique designation of the rented property: Address, location within building, floor, and, if applicable, lease agreement number – in such a way that there is no doubt which rooms are affected.
5. Reason for termination with immediate effect The important reason must be specified concretely. „Breach of contract“ without further details is not sufficient.
6. Deadlines calculated correctly: Check if Saturdays, Sundays and public holidays extend the deadline for submission. When in doubt, it's better to send it off a week earlier.
7. Proof of access The termination only takes effect upon receipt. Safest options: delivery by bailiff, handover against written confirmation of receipt, or registered mail with a recorded delivery slip. Normal registered mail with return receipt is only sufficient if the recipient actually collects it.
8. Alternatively, ordinary termination: In case of an immediate termination, always additionally declare the ordinary termination for the earliest possible date.

After termination – what happens and what risks loom

Objection and Legal Protection

Unlike residential tenancy law, commercial tenants do not have a statutory right of objection due to social hardship. If the tenant considers the termination to be invalid, the legal route remains open. As long as no legally binding judgment exists, they do not have to leave the premises – but they bear the risk of legal costs if they lose.

Compensation for use under § 546a of the German Civil Code (BGB)

If the tenant does not return the commercial premises after the termination of the lease, they owe the landlord compensation for use. This compensation amounts to at least the agreed rent; however, the landlord can also demand the customary local rent if it is higher. Furthermore, they can claim further damages – for example, lost profits if a more financially sound subsequent tenant is available.

Termination consequential damage – the biggest financial risk

This point deserves special attention because it is regularly underestimated by both sides.

Tenant Scenario A restaurant operator terminates the lease without notice due to a defect they consider sufficiently serious. The court sees things differently. Result: The tenant owes the landlord damages amounting to the rent that would have accrued until the regular end of the contract – minus saved expenses and income from alternative rentals. With five years remaining and a monthly rent of €5,000, this can mean a claim of €300,000.

Landlord Scenario The landlord issues a termination without notice, which proves to be unjustified. He is obliged to compensate the tenant – removal costs, lost profit, difference in rent at the new location.

In both cases, an immediate termination without prior legal review is a risk that bears no relation to the cost of advice.

From our consulting practice:

I was mandated by a commercial tenant (retail) who wanted to leave the rented premises at short notice and terminate the lease without notice due to what he considered to be significant defects (damage to the sales area, faulty air conditioning). After examining the factual and legal situation, I had to make it clear to him that the threshold for effective termination without notice had not yet been reached. The client had already been toying with the idea of leaving the location immediately. If he had taken this step without a reliable basis, he would have been threatened with considerable consequential damage from the termination, because the landlord could have claimed the rent until the regular end of the contract as well as further damages. This damage could have run into 6 figures. Instead, we first formally reprimanded the defects, set deadlines and prepared an orderly negotiated solution in parallel. This case shows how quickly a premature cancellation without notice can turn into a five or six-figure economic risk

The landlord's lien (§ 562 BGB)

Under Section 562 of the German Civil Code (BGB) (in conjunction with Section 578(2) BGB), the landlord has a statutory lien on the tenant's property brought into the commercial premises. It secures claims arising from the tenancy – back rent, damages, outstanding ancillary costs – and arises automatically.

For landlords, it is a central security instrument after termination due to rent arrears. Business equipment, machinery, and stock belonging to commercial tenants can represent significant value. The landlord can even prevent the self-willed removal of these items through self-help (§ 562b BGB).

For tenants, this means that anyone who removes items from the rented premises after termination, despite the landlord having legitimate claims, will be liable for damages. In the event of the tenant's insolvency, however, the landlord's lien conflicts with the rights of the insolvency administrator – legal advice is essential here.

Return of the rented property and obligation to reinstate

Under § 546 of the German Civil Code (BGB), the tenant is obliged to return the rented property upon termination of the tenancy agreement. In commercial tenancy law, it is often contractually agreed that the tenant must restore the premises to their original condition – meaning: remove fixtures and fittings, undo any alterations, and return the premises in a broom-clean state. The costs for this can be considerable, particularly if the tenant has carried out extensive refurbishment work. You should check at an early stage what restoration obligations your contract stipulates and factor the costs into your decision.

Service charge statement after contract termination

If the tenancy ends during an ongoing billing period, the landlord remains obliged to provide a statement of operating costs. The tenant is entitled to a pro-rata statement up to the day of return. Overpayments are to be refunded, and back payments remain due. The billing period is twelve months after the end of the billing period.

Eviction lawsuit and forced eviction

If the tenant refuses to vacate the commercial premises after valid termination, the landlord can file an eviction lawsuit. The competent court is the one in whose district the rented premises are located – depending on the value of the dispute, the local court (Amtsgericht) or the regional court (Landgericht). At the regional court (in Cologne: LG Köln), legal representation is mandatory. For enforcement, the landlord has the so-called „Berliner Räumung“ (Berlin eviction) at their disposal, where the items left behind remain in the premises and are stored by the landlord – this significantly reduces their advance performance obligation.

The termination agreement – often the more economically sensible solution

Not every contract termination needs to be done via notice. In many cases, a mutual termination agreement is faster, cheaper, and more predictable. Typical points of negotiation:

• Vesting and handover time
• Separation payment (conceivable in both directions)
• Compensation for tenant installations and improvements
• Settlement of ancillary costs and return of security deposit
• Mutual waiver of claims
• Contingent on obtaining a suitable sub-tenant

A carefully negotiated termination agreement avoids the uncertainties of court proceedings and saves both parties time, stress, and legal fees.

From my consulting practice:

In another case, the tenancy was clearly economically unsuccessful for both parties, but legally not easily terminable. Instead of engaging in a lengthy and expensive dispute over grounds for termination, I negotiated a termination agreement for my client. Key points included a clearly defined handover date, agreement on demolition obligations, mutual waiver of further claims, and a one-off payment that provided both parties with planning certainty. For my client, this was the significantly better solution than litigation with an uncertain outcome. The most economically sensible way to end a commercial lease is often not the most aggressive, but the most cleanly negotiated. It should be noted that a settlement always involves concessions from both sides, as both parties are only willing to settle if the agreement has both advantages and disadvantages for them. 

Common errors in terminating commercial lease agreements

From our consulting experience, we know of a number of recurring mistakes – on both sides:

1. Summary dismissal without an alternative ordinary notice: The court does not recognise the valid reason, and the landlord is left with no effective termination. Months lost, costs incurred, nothing achieved.
2. Missed or incomplete warning The specific naming of the breach of contract, the setting of a deadline, or the threat of termination is missing. The subsequent termination for cause will be challengeable.
3. Termination not addressed to all contracting parties: For a GbR with three partners as tenants, it is not sufficient to terminate only the managing partner.
4. Power of attorney not attached The recipient promptly rejects the termination pursuant to Section 174 of the German Civil Code - effectively.
5. Access not demonstrable The resignation has been sent, but accession cannot be proven. A normal registered letter is not sufficient if the recipient does not collect it.
6. Contractual Breach of Form The law only requires text form from 2025/2026 – but the tenancy agreement still stipulates written form. An email termination would then potentially be invalid.
7. Missed deadline for extension The tenant did not want to extend the contract but missed the notice period. Five more years of contractual obligation.
8. Tenant relies on grace period: The commercial tenant believes they can simply pay off the rent arrears after receiving the notice of termination. This works in residential tenancy law – but not in commercial tenancy law.
9. Decommissioning obligation underestimated The tenant gives notice but forgets their contractual obligation to restore the property. The costs of restoring the property significantly exceed the deposit.

Frequently asked questions

What is the notice period for a commercial lease agreement?

Legally, six months to the end of the quarter (§ 580a para. 2 BGB), unless the contract specifies otherwise. Contractually, shorter and longer periods are possible.

Can a fixed-term commercial lease be terminated early?

Not properly. Unilateral termination for good cause (§ 543 BGB) remains possible and cannot be contractually excluded. More on this in the section on extraordinary termination above.

Does the landlord need a reason for ordinary termination?

No – unlike residential tenancy law, no reason for termination is required.

What has changed regarding written communication since 2025/2026?

Text form is sufficient instead of written form – also for old contracts from 01.01.2026. The written form termination as an exit strategy has therefore largely ceased to apply. Details in the section on the BEG-IV reform above.

Can the commercial tenant pay outstanding rent arrears and avert the immediate termination of the lease?

No. The grace period under Section 569 (3) No. 2 of the German Civil Code (BGB) does not apply to commercial lease law.

Compensation for consequential loss of contract

Damages for an unjustified termination without notice – for the tenant, rent for the remaining term; for the landlord, moving and subsequent costs. For long-term contracts, this can quickly run into six figures. Details in the section on risks after termination above.

Can I cancel by email?

Legally, yes (in written form). However, check contractual written form clauses and ensure receipt.

What happens if the tenant does not move out after the termination of their tenancy?

He owes compensation for use amounting to the agreed or customary rent according to § 546a BGB. The landlord must file an eviction lawsuit to enforce the forced eviction.

When to involve a specialist lawyer

Terminating a commercial lease agreement is rarely a case of ticking a few boxes. The financial risks are high, the legal requirements are complex, and formal errors can cost months or years. Have every termination – whether you are issuing it or have received one – reviewed by a solicitor before taking the next step.

As a law firm in Cologne specialising in tenancy and commercial tenancy law, we advise both landlords and tenants of commercial properties on contract review, termination preparation, warnings, settlement negotiations, and representation in eviction proceedings before the Cologne Local Court and Regional Court.

Free initial assessment for your situation

Telephone: 0221 - 80187670

E-Mail: info@mth-partner.de

Solicitor Helmer Tieben · Sachsenring 34 · 50677 Cologne

Important Note: The content of this article has been prepared to the best of our knowledge and belief. However, due to the complexity and constant evolution of the subject matter, we must exclude liability and warranty. The content of this post has been created to the best of our knowledge and belief. However, the complexity and constant changes in the subject matter make it necessary to exclude liability and warranty. If you require legal advice, please call us without obligation on 0221 – 80187670 or send us an email at info@mth-partner.de.