Commercial Tenancy Law in Lower Saxony: A Comprehensive Guide

Commercial tenancy law in Lower Saxony and throughout Germany differs fundamentally from residential tenancy law. While residential tenants are extensively protected by the BGB, the principle of freedom of contract applies to commercial properties (offices, retail, gastronomy, warehouses). Landlords and tenants interact here at "eye level" as business partners.

Disclaimer: This guide provides general legal information for commercial landlords and does not constitute legal advice. Commercial lease agreements entail high financial risks. Always have commercial contracts in Lower Saxony reviewed by a specialized attorney. Information last verified: March 2026.

Key Regulations at a Glance

Contract Design and Written Form

Freedom of contract allows landlords to pass almost all risks on to the commercial tenant. A crucial element, however, is the written form (§ 550 BGB): If a commercial lease agreement is concluded for a fixed term longer than one year (e.g., a 5-year contract), it is mandatory that it be set down in writing in its entirety and without gaps (including all addenda, appendices, and sketches).

If this formal requirement ("Schriftformerfordernis") is violated, the contract is legally deemed to be "concluded for an indefinite period." The tenant could then terminate at any time with statutory notice (6 months) despite the fixed term.

Read our guide on Commercial Lease Agreements.

Security Deposit

Unlike residential property, there is no statutory upper limit of three net cold rents for commercial property. Landlords in Lower Saxony can (and should) demand much higher deposits (often 6 months or more) to cover default risks and dismantling costs. The obligation to invest in an interest-bearing escrow account also does not apply in the absence of a statutory provision, provided the contract does not stipulate otherwise.

We explain the details in the article on Commercial Security Deposits.

Rent Increases and Value Securing

Strict rules such as the rent brake or the cap from residential areas do not exist in the commercial sector. Instead of pointing to local comparative rents, landlords generally secure their returns through value-securing clauses or index-linked lease agreements (§ 557b BGB). This means the rent automatically rises in parallel with the inflation rate (Consumer Price Index).

You can find more information in our guide on Commercial Rent Increases.

Maintenance and NNN Leases

According to the German model of the BGB, the landlord is actually obliged to maintain "roof and structure" (structural framework, roof, external walls). In commercial tenancy law in Lower Saxony, however, the international trend to transfer all maintenance and repair costs to the tenant has been adapted. Such "Double Net" or "Triple Net" (NNN) regulations are partially permissible subject to terms and conditions controls.

Details on this in the article Commercial Maintenance.

Eviction and Termination

There is no special tenant protection in the event of termination. If the contract is open-ended, landlords can terminate it without giving reasons (e.g., without personal need) with the statutory notice period. The period for business premises according to § 580a BGB is usually at the latest on the 3rd working day of a calendar quarter to the end of the next calendar quarter (effectively almost six months).

Information on termination without notice and eviction in the event of default of payment is available in the article Commercial Eviction Process.

Duty to Operate and Protection Against Competition

In the case of shops and shopping centers, a contractual duty to operate (Betriebspflicht - duty to keep the shop open at certain times) is often agreed upon. In return, the case law grants the tenant an unwritten, contract-inherent protection against competition: The landlord may not lease the same business (main assortment) to another tenant in the same building or shopping center to protect the first tenant from ruin.

Managing Commercial Properties with Landager

Managing commercial units requires meticulous monitoring of payments (such as value-securing claims) and precise deadline control to avoid formal written defects. Use Landager to automatically adjust index-linked rents and to monitor expiring options of your commercial tenants in Lower Saxony in good time.

Explore further commercial legal topics:

• Commercial Security Deposits
• Eviction Process: Commercial
• Commercial Required Disclosures
• Commercial Rent Increases
• Commercial Lease Agreements
• Commercial Maintenance
• Commercial Late Fees