B2B Commercial Rent Increases and Turnover Rent (Turkey)

The determination of rental prices and their annual increases for Shopping Malls (AVMs), office plazas, and industrial warehouses in the Turkish market are subject to much different and stricter rules than the European market (or America). The biggest distinctions are the "Prohibition of Foreign Currency" and the "Mandatory CPI Ceiling."

Disclaimer: After 2020, the TCO's rent increase limitations (CPI Ceiling) came into effect for merchants (companies) as well, and the very harsh increase demands of Corporate property owners have largely lost their legal power. Information verified: March 2026.

1. Statutory Ceiling: "12-Month CPI Average" (For B2B)

Just like in residences, the rent increase rate in "Roofed Workplaces" (Office, Shop, AVM) cannot exceed the twelve-month average of the Consumer Price Index (CPI/TÜFE) announced by TurkStat (TÜİK).

• Even if the landlord is a giant foreign fund, and the tenant is a giant holding company making massive turnover; they cannot write "Annual rent is increased by adding CPI + 10 points" to the lease contract. (The exceeding part is void/invalid).
• In the past, this ceiling limit was not applied to corporate merchants (free contract period), but as of July 2020, commercial tenants have also been completely included in this CPI Armor.

2. Prohibition of Leases with Foreign Currency (Protection of Turkish Currency)

One of the biggest operational differences in the Turkish market is that it is largely prohibited to index domestic contracts to foreign currency. (Presidential Decree No. 85 - Processes after September 2018).

• Between two firms resident in Turkey (companies established according to TR laws); the price of AVM shops, offices, or rental factories cannot be determined in Foreign Currency (Dollar / Euro, etc.) or Indexed to Foreign Currency (even if in TRY, by adding exchange differences).
• Exceptions: If the tenant company itself is more than 50% foreign-funded, or a company established in Free Zones, "Foreign Currency Commercial Lease" can be made. In all other ordinary B2B leases, only the local currency "Turkish Lira (TRY)" is mandatory.

3. Shopping Mall Culture and the "Turnover Rent" Solution

Against static fixed prices melting completely hitting the inflation limit (CPI), the legal and market savior formula of AVM investors in Turkey is the "Turnover Rent (Ciro Kirası)" model built on turnover.

• How Does the System Work?: In the B2B Contract, alongside a low minimum (Maktu) fixed monthly rent of the Shop (E.g.: 50,000 TL), there is an article: "or 8% of the Monthly Gross Turnover (excluding VAT), whichever is higher, is the rent for that month."
• Legal Basis: Turnover rents have been accepted as a "valid rental format not contrary to the CPI limit" by Supreme Court and laws (Within the framework of Commercial B2B joint profit risk contract) (Its limits are merchant freedom). By putting an "integration obligation" (Receipt / Invoice Integration article) online to the AVM central software pool of fiscal cash registers and POS device systems, they catch the increase with a share from the tenant's income from month to month without leaking the ceiling!

4. "5-Year Rent Adjustment (Determination) Lawsuits" in B2B Workplaces

The same protection in residences; gets interrupted when the office B2B tenant completes 5 years. If your company tenant has completed 5 full years with extensions in your office, the property owner; against the "Low remaining price" of the contract; now breaks the chains of the legal CPI raise and goes to the Judiciary to open a current market determination.

• Current Market Determination: The Judge, considering the new office rents in the region (M2 Square meter rental fee current market research of peer plazas), the inflation situation, and also the Corporate trade volume; will determine a brand new (also breaking the old tenant 10% discount equity) free market Court Rent Figure to the B2B shop.

Proceed to the next document: Commercial Lease Agreement Conditions.