7:290 or 7:230a? How to choose the right type of commercial space
The choice between a 7:290 or 7:230a commercial space is not a formality, but determines your scope for years to come. For 7:290 commercial space (shop, catering, craft with direct public access), the statutory term protection of Article 7:292 of the Civil Code applies: first five years, then another five. This protection has a purpose: the tenant must be able to recoup investments in the property (fittings, renovation, location-specific goodwill). For 7:230a commercial space, the contract is the main thing.
In this article, I’ll briefly explain the difference between the two types of rental space and give you an idea of the main legal consequences.
Local pub or office
A 7:290 commercial space is defined in law as a commercial space intended for the operation of a retail business (retail trade), a restaurant or café business, a takeaway or delivery service, or a craft business, provided that the rented space includes premises accessible to the public for the direct delivery of movable goods or for the provision of services. The idea behind this category is that some types of businesses are particularly dependent on their location for their customer base.
Article 7:230a commercial space, on the other hand, is the residual category. All built rented spaces that are used for business purposes but do not fall under Article 7:290 are in principle covered by 7:230a of the Civil Code. Article 7:230a commercial space includes office space, a storage room, a production hall, a laboratory or a logistics terminal.
Important to know
Even after ten years, a 7:290 tenancy does not end “automatically”. Termination is only possible through the courts and on legal grounds, with a weighing of interests. This gives tenants real security, but requires landlords to plan ahead, keep good records and follow a legally sound route if termination is desired. It may therefore be important for landlords not to rent out space undesirably as Article 7:290 commercial space).
The rules are more flexible for 7:230a commercial space. There is no 5+5 term, but only limited protection against eviction: after termination, the tenant can ask the court for a temporary postponement of eviction. This is fundamentally different from term protection. Anyone who invests heavily here without further agreements runs the risk of being able to enjoy their investments for only a short time.
Designation and enforcement can influence classification
That is precisely why the usage agreements in the lease agreement are crucial. The classification does not follow from the label “office” or “shop” in the contract, but from the actual (permitted and actual) use. If, for example, the rental agreement permits retail or takeaway, or if that use is tolerated, then 7:290 may apply, with all the term protection that entails. Landlords who want to avoid unwanted minimum term protection must clearly formulate and enforce the intended use.
The reverse applies to tenants. Be honest about your business model and make sure you can stay long enough before making any major investments. Under 7:290, that certainty often follows from the law. In the case of 7:230a, it is important to build contractual safeguards, for example by excluding or limiting mutual termination for a certain period, or by including a renewal option with pre-determined conditions. In our practice, we see that landlords are often willing to do this, especially if the security is linked to an improvement in the rented property.
Have your situation assessed at an early stage
Are you unsure whether your (intended) use falls under 7:290, or do you want to create investment security under 7:230a? Have the draft contract and the usage provision assessed at an early stage. A small change in the text or a clear enforcement agreement can make the difference between ten years of legal protection or only temporary protection against eviction. Our lawyers specialising in tenancy law will be happy to help you draw up a rental agreement that suits your plans and your risk profile.
