Commercial lease indexation

Indexation of commercial leases

Do you let a shop, office, restaurant, warehouse or other commercial property? Find out how commercial lease indexation works and why automation is the smartest choice for commercial letting too.

What is a commercial lease?

A commercial lease is a specific form of letting for commercial activities: shops, restaurants, cafes, offices and warehouses. In Belgium it falls under the Commercial Tenancy Act, which sets its own rules, including a minimum term of nine years and a right of renewal. Indexation, however, follows the same basic formula as residential leases.

Same formula, different rules

The calculation is identical: new rent = base rent x new health index / initial index. The key difference: the energy certificate restrictions that apply to residential leases do not apply to commercial property. You can therefore always index a commercial lease in full, whatever the building's energy rating. Here the initial index always corresponds to the month before signing.

Indexation for retail premises

Retail property is a significant segment of the rental market. Whether it is a local shop or a unit in a shopping centre, the rent may be indexed each year on the anniversary date. We calculate the correct indexation and send a professional letter to your tenant, with you in copy.

Indexation in hospitality

Restaurants, cafes and hotels fall under the Commercial Tenancy Act. Rents there are often higher, so annual indexation represents a considerable amount. A 3% indexation on a rent of 2,500 euro per month means 900 euro of additional income per year — an amount that recurs annually.

Do you let a shop, office, restaurant, warehouse or other commercial property? Find out how commercial lease indexation works and why automation is the smartest choice for commercial letting too.

Indexation for offices and business premises

For offices, a fixed service charge that is not indexed frequently applies alongside the rent. Our platform handles this distinction between indexable and non-indexable amounts, so that only the rent itself follows the index while fixed charges stay unchanged.

Indexation for warehouses and logistics

Warehouses and logistics property are a growing market in Belgium. These leases often run for long terms, which makes indexation all the more decisive: over a nine-year lease, correct annual indexation protects your return for the long run.

VAT and commercial leases

VAT may apply to the rent under a commercial lease. Where it does, it is calculated on the indexed rent. Our platform accounts for VAT-liable letting and states the correct amount on the indexation letter, so your business tenant immediately has the exact figures for their accounts.

Professional communication

Business tenants expect polished communication. Our indexation letters are formally drafted, name both the tenant company and the contact person, and are emailed to your tenant with you in copy.

Calculate your new rent — free

Enter your base rent, start date and region and see straight away what you may charge this year. Based on the official health index, with the Flemish EPC correction applied automatically.

Go to the free calculator →

Ready?

Submit your contract and never miss an indexation.