{"id":13340,"date":"2026-04-01T07:51:41","date_gmt":"2026-04-01T07:51:41","guid":{"rendered":"https:\/\/www.mth-partner.de\/?p=13340"},"modified":"2026-04-01T07:56:35","modified_gmt":"2026-04-01T07:56:35","slug":"kuendigung-gewerbemietvertrag","status":"publish","type":"post","link":"https:\/\/www.mth-partner.de\/en\/termination-of-commercial-lease-agreement\/","title":{"rendered":"Termination of Commercial Lease Agreement 2026: Rights for Tenants & Landlords"},"content":{"rendered":"

<\/span>Termination of Commercial Leases \u2013 Rights of Tenants and Landlords<\/b><\/span><\/h1>\n

Last updated: April 2026 \u00b7 Incorporates the BEG IV reform (text form instead of written form since 01.01.2025\/2026)<\/span><\/i><\/p>\n

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 \u00a7 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 \u2013 with far-reaching consequences for both parties.<\/span><\/p>\n

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 \u2013 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 \u20ac4,000 has a total volume of \u20ac480,000. Errors in the termination \u2013 on both sides \u2013 can be life-threatening.<\/span><\/p>\n

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.<\/span><\/p>\n

Note:<\/b> 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.<\/span><\/p>\n

At a glance \u2013 the six key points:<\/b><\/p>\n

    \n
  1. In commercial tenancy law, there is no statutory tenant protection. Landlords and tenants meet on equal footing \u2013 this means more freedom, but also more risk.<\/span><\/li>\n
  2. The ordinary cancellation<\/a> an indefinite contract does not require a reason, but compliance with the notice period (legally: 6 months at the end of the quarter, \u00a7 580a para. 2 BGB).<\/span><\/li>\n
  3. Extraordinary termination requires an important reason within the meaning of \u00a7 543 of the German Civil Code (BGB) and generally requires prior Warning letter<\/a>.<\/span><\/li>\n
  4. From 01\/01\/2026, the text form will suffice instead of the written form for old contracts too (\u00a7\u00a7 578 para. 1 sentence 2, 550 BGB n.F.). The \u201ewritten form termination\u201c as an exit strategy has therefore practically become obsolete.<\/span><\/li>\n
  5. The grace period regulation of \u00a7 569 para. 3 no. 2 BGB applies <\/span>not<\/b> in commercial tenancy agreements \u2013 a back payment after notice of termination has been received cures nothing.<\/span><\/li>\n
  6. Unjustified immediate terminations can lead to massive damages \u2013 the consequential damage of termination can become six figures in long-term contracts.<\/span><\/li>\n<\/ol>\n

    \"Infographic<\/p>\n

    <\/span>Commercial lease or residential lease \u2013 why the distinction matters so much<\/b><\/span><\/h2>\n

    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 \u2013 which can be both good and bad, depending on which side you are on.<\/span><\/p>\n

    Whether a rental agreement is considered commercial does not depend on the title of the contract. The heading \u201eCommercial Lease Agreement\u201c is merely an indication. What is decisive is what was agreed upon at the time the contract was concluded <\/span>Purpose of use<\/b> The premises. If commercial or freelance activity is predominantly carried out there \u2013 a craft business, a retail shop, a restaurant, a law firm, a doctor's surgery \u2013 then a commercial lease agreement is in place. A <\/span>detailed overview of the specifics of commercial leases<\/span><\/a> Find this in our separate article.<\/span><\/p>\n

    <\/span>Mixed-use leases \u2013 when commercial and private use overlap<\/b><\/span><\/h3>\n

    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 \u2013 if the commercial use does not clearly dominate \u2013 the courts will assume a residential tenancy in favour of the tenant. However, the Berlin Court of Appeal has clarified that in cases of <\/span>Leases with legal entities<\/span><\/a> as a general rule, commercial lease law is to be assumed, unless residential tenancy law has been expressly agreed upon.<\/span><\/p>\n

    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.<\/span><\/p>\n

    <\/span>Ordinary termination \u2013 the standard procedure for indefinite contracts<\/b><\/span><\/h2>\n

    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 \u2013 provided that the form and notice period are correct.<\/span><\/p>\n

    \"Visualisation<\/p>\n

    <\/span>Notice periods according to \u00a7 580a para. 2 BGB<\/b><\/span><\/h3>\n

    Unless the rental agreement specifies otherwise, the statutory notice period applies: notice must be given no later than <\/span>third working day of a calendar quarter<\/b> to the end of <\/span>next calendar quarter<\/b> to be explained.<\/span><\/p>\n

    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 \u2013 i.e. Monday. Sundays and public holidays also shift the deadline according to the general rule of \u00a7 193 BGB.<\/span><\/p>\n

    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 \u2013 so the notice of termination would have to have been received by Saturday 3rd July at the latest.<\/span><\/p>\n

    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.<\/span><\/p>\n

    <\/span>Fixed-term contracts: ordinary termination excluded<\/b><\/span><\/h3>\n

    With fixed-term commercial leases \u2013 and these are the majority in practice \u2013 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<\/a>. An exception is made according to \u00a7 544 BGB for contracts concluded for life or for a period of more than 30 years \u2013 these can be validly terminated after 30 years with the statutory notice period.<\/span><\/p>\n

    <\/span>Extension clause and option clause \u2013 a common pitfall<\/b><\/span><\/h3>\n

    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:<\/span><\/p>\n

    The <\/span>Extension clause<\/b> automatically renews, provided neither party objects in due time. If one side misses the objection deadline, the contract continues for the agreed term \u2013 often one to five years. <\/span>Option clause<\/b> 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.<\/span><\/p>\n

    In addition, \u00a7 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 \u2013 and this is the case in most standard agreements.<\/span><\/p>\n

    Practical tip:<\/b> Schedule the cancellation period early \u2013 ideally with a double reminder, twelve and six months before the deadline. The consequences of missing it can mean years of additional contract commitment.<\/span><\/p>\n

    From our consulting practice:<\/b><\/p>\n

    A client from Cologne's S\u00fcdstadt, 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 \u201eterminate properly\u201c. 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.\u00a0<\/span><\/p>\n

    <\/span>In full effect from 2026: Text form instead of written form \u2013 the BEG-IV reform<\/b><\/span><\/h2>\n

    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 \u00a7\u00a7 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.<\/span><\/p>\n

    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 \u2013 even if a ten-year fixed term had actually been agreed. This so-called \u201ewritten form termination\u201c 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 <\/span>Written form for the extension of commercial leases<\/span><\/a> as well as our contribution to the question of when the <\/span>Invoking a lack of written form can be contrary to good faith<\/span><\/a>.<\/span><\/p>\n

    The Fourth Bureaucracy Relief Act (BEG IV) has fundamentally changed this practice. With the amendment of \u00a7 550 BGB in conjunction with \u00a7 578 (1) sentence 2 BGB n.F., the following applies:<\/span><\/p>\n