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Logistics lease agreements

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The lease agreement for logistics property.

Term, indexation, service charges, reinstatement: a lease on a logistics building often binds both parties for many years and determines costs and flexibility. What applies in Germany, where the pitfalls are and what tenants and landlords should look out for.

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InsightsLÈMANS ResearchUpdated November 2026

Why logistics leases need their own rules

A lease on a logistics property is a commercial lease under German law. Unlike residential tenancy law, freedom of contract largely applies: term, rent, service charges, repairs and reinstatement can be freely negotiated. Limits are set mainly by the law on standard business terms, the Price Clause Act and a few mandatory provisions of the German Civil Code (BGB).

Logistics space brings additional issues: large hall and yard areas, technical systems such as sprinklers, doors and dock levellers, racking with high floor loads, round-the-clock operation, permits for certain goods and often extensive tenant fit-outs. If these points are not properly settled, someone pays later through service charges, repairs or reinstatement. This guide works through the lease clause by clause.

Key points

Since 2025, text form is sufficient for long-term commercial leases in Germany, and since 2 January 2026 this applies to all leases. If the form is not met, a long-term lease can be terminated with statutory notice, at the earliest one year after handover.
Automatic index clauses are only valid if the lease is designed for at least ten years. Following a Federal Court of Justice ruling of March 2026, they must also withstand review under the law on standard terms.
Maintenance and repairs cannot be transferred to the tenant without limit in standard-form leases. Strict limits apply to structural elements and shared areas.
Lettable area, the list of service charges, reinstatement obligations and permitted use often determine the real cost more than the net rent.
For current rents and terms in your region, talk to us: we share market data in person.

This guide provides a general overview of German law and does not replace legal or tax advice in individual cases. Legal position and market data as of November 2026.

Key figures at a glance

Four figures everyone negotiating a lease on logistics space in Germany should know:

1 year: Leases with a term of more than one year require text form; otherwise they can be terminated early.
10 years: Minimum commitment for an automatic index clause to be valid under the Price Clause Act.
6 months: Roughly the statutory notice period for business premises, always ending at a quarter end.
10%: If the actual lettable area deviates by more than ten per cent, case law can treat this as grounds for a rent reduction.

Sources: sections 550, 578 and 580a BGB, Price Clause Act, Federal Court case law on area deviations. We are happy to discuss current rents and terms for your region in person.

Form: text form instead of written form

For a long time, the written-form requirement was the biggest pitfall in German commercial tenancy law. A lease of more than one year had to contain all essential terms in one signed document. If not, it was deemed concluded for an indefinite period and could be terminated with statutory notice, a popular lever to escape long leases.

The Fourth Bureaucracy Relief Act changed this. Since 1 January 2025, text form is sufficient for commercial leases with a term of more than one year. For leases concluded before that date, a transition period applied until 1 January 2026. Since 2 January 2026, text form applies to all commercial leases.

What changes in practice

An e-mail, a PDF or another legible declaration identifying the sender is sufficient; a handwritten signature is no longer required.
The consequence remains: if text form is not met, the lease is deemed open-ended and can be terminated with ordinary notice, at the earliest one year after handover.
Whether all essential terms must still be contained in a single document has not yet been finally settled. Take care with agreements spread over several e-mails.
A new risk is concluding a lease or amendment unintentionally through an e-mail thread.

Recommendations

Stipulate that only a version expressly designated as the execution version is binding.
Always draft amendments as complete documents with a clear reference to the main lease.
Archive negotiation drafts in an orderly way and clean up outdated written-form clauses in older leases when the opportunity arises.
The Federal Court of Justice held clauses curing defects of form to be generally invalid back in 2017. Buyers therefore continue to review the form of leases in due diligence.

Term, options and termination

The term is the most important lever for both sides. Landlords need predictable income for financing and valuation; tenants need security for investments in racking, conveyors and IT but do not want to commit for too long.

In practice, existing halls are often let for three to ten years, new builds and build-to-suit projects for ten to fifteen years.
Extension options give the tenant the right to extend on agreed terms, typically one or two options of three to five years. Deadlines and the form of exercise matter.
Break options, for example on loss of a major customer contract, are negotiable and affect the rent.
A shorter fixed term combined with options gives tenants flexibility but reduces the remaining term that matters to landlords and lenders.

Statutory notice period

If no fixed term is agreed or the form was not met, a lease of business premises can be terminated under section 580a(2) BGB no later than the third working day of a calendar quarter, effective at the end of the following quarter. Notice is thus just under six months but always ends at a quarter end.

The lease should specify a clear form for the notice itself. A declaration whose receipt can be proven holds up in court.

Lease
Net rent is only part of the bill.

Rent and indexation: index, stepped, turnover

With long terms, landlords want to protect the rent against inflation. Two models are common: indexed rent linked to the consumer price index, and stepped rent with fixed increases.

Indexed rent under the Price Clause Act

An automatic index clause in a German commercial lease is only valid under certain conditions: the reference must be an official price index, usually the consumer price index of the Federal Statistical Office, and the landlord must waive ordinary termination for at least ten years, the lease must run for at least ten years or the tenant must be able to extend it to at least ten years. The clause must also work both upwards and downwards. A clause that only triggers renegotiation when a threshold is reached is also permitted.

Typical arrangements in logistics leases are adjustment only after a certain index change, for example five or ten per cent or points, partial pass-through of the increase and an annual adjustment cycle. It matters whether points or per cent are meant, which base year applies and from when the adjusted rent is due.

Federal Court ruling of March 2026: review of index clauses as standard terms

On 11 March 2026 the Federal Court of Justice ruled (XII ZR 51/25) that standard-form index clauses must comply not only with the Price Clause Act but also with the law on standard terms. In the case decided, the base month preceded the start of the lease, and the clause provided for automatic adjustment while also requiring a written demand. The consequence is serious: unlike a mere breach of the Price Clause Act, the clause is void from the outset and the tenant can reclaim increases that are not yet time-barred.

Review existing index clauses: base month, transparency, adjustment mechanism.
In new leases, ideally tie the base month to the start of the lease.
Do not mix automatic adjustment with a requirement for a declaration.

Stepped rent and incentives

Stepped rent fixes increases in advance, independent of the index. It provides predictability but can be more expensive when inflation is low. Rent-free periods, fit-out contributions and other incentives are common for larger lettings and reduce the effective rent, but should be linked to the term and clearly set out in the lease.

Lettable area: what exactly is let

In logistics property the lettable area consists of several components, usually priced differently: hall space, mezzanine, office and welfare space and outdoor areas such as truck parking, yards and container spaces.

The basis of measurement should be expressly agreed; common standards are the gif guideline for commercial lettable area and DIN 277.
Depending on the standard, area is measured as gross floor area using external dimensions or as lettable or net area using internal dimensions. The difference can amount to several per cent. Columns, plant rooms and the sprinkler room should be clearly allocated.
If the actual area deviates from the agreed area by more than ten per cent, case law can treat this as a defect justifying a rent reduction.
Outdoor areas, parking and roof areas should be clearly marked on a site plan attached to the lease, especially if the roof is used for solar power or let separately.

Besides the area, the technical description belongs in the lease: clear height, floor load, number and type of doors, sprinkler type, lighting, heating and grid connection. What is not described is hard to claim later.

Service charges and repairs

In German commercial leases, far more costs can be passed on to the tenant than in residential leases, but only if they are clearly listed. Double-net structures are common in logistics: the tenant bears almost all operating costs while the landlord retains responsibility for structure and roof. Triple net, where these also lie with the tenant, is found mainly in single-let buildings with long terms.

Cost item	Usual arrangement	What to look out for
Property tax, insurance	Passed on to tenant	Ask for disclosure of cover and deductibles; regulate premium increases caused by the tenant's use separately
Management costs	Can be passed on if agreed as management costs	Agree a cap as a percentage of net rent
Maintenance of technical systems	Passed on to tenant	List sprinklers, fire alarm system, doors and smoke vents individually; repairs of shared systems only with a cost cap
Repairs within the demise	Often with tenant	Transferable only to a limited extent in standard-form leases; an annual or per-case cap is common
Structure and roof	With landlord	Renewal of roof, façade, structure and central systems generally cannot be transferred to the tenant in standard-form leases
Shared areas	Pro-rata allocation	Maintenance and repairs recoverable only with a cost cap; define allocation key and areas
External areas, winter service	Passed on to tenant	Significant cost for large yards; define the scope of services
CO₂ costs	Split by law	For non-residential buildings the tenant bears at most half under the CO₂ Cost Allocation Act; note the 2026 amendments
Energy and water	Direct contract or recharge	Separate meters per unit, rules for solar power from the roof

According to Federal Court of Justice case law, a blanket transfer of all maintenance and repair costs in a standard-form lease is invalid. The often-quoted ten per cent of annual rent is a practical benchmark, not a statutory limit. Individually negotiated terms are not subject to review as standard terms.

Use, technology and permits

Logistics-specific clauses that standard leases often omit or treat too briefly:

Permitted use and permits

The permitted use should cover the actual operation, such as storage, picking, cross-docking or assembly. Who bears the risk if a change of use or an emissions permit is required?

Hazardous goods and batteries

Storage of hazardous goods, lithium-ion batteries or water-polluting substances only with consent and suitable fire protection. Record quantities and storage classes in the lease.

Fire protection and insurance

Sprinkler type, permitted storage heights and fire loads determine what may be stored. The property insurer's requirements should be known before signing.

Floor load and racking

Record permitted distributed and point loads. Anchoring racking in the floor is a frequent point of dispute at lease end.

Fit-out and reinstatement

Whatever the tenant installs must usually be removed at lease end. Better: a list of installations that may remain and a defined return condition.

Operating hours and yards

Round-the-clock operation, night-time truck traffic and use of parking should be expressly permitted, especially near housing.

VAT, security and other clauses

VAT

Letting is generally exempt from VAT in Germany. The landlord can opt for taxation under section 9 of the VAT Act and thus recover input VAT on construction and maintenance costs. This is only possible insofar as the tenant is a business using the space for supplies that do not exclude input VAT deduction. The tax authorities allow a de minimis threshold of five per cent, and the option can also be exercised for individual areas. The lease should therefore oblige the tenant to use the space only for such supplies, to notify any change and to compensate the landlord if input VAT has to be repaid.

Rent security

Unlike residential leases, there is no statutory cap of three months' rent. Three to six months' gross rent as a cash deposit or bank guarantee is common, and group companies may provide parent guarantees or letters of comfort. Tenants should avoid guarantees payable on first demand where possible.

Rent reduction, set-off, subletting

A standard-form exclusion of rent reduction is only valid if the tenant can reclaim overpaid rent.
Set-off can be limited to undisputed or finally established claims.
Subletting requires the landlord's consent. If consent is refused without good reason, the tenant has a special termination right that cannot be excluded in standard terms. For contract logistics providers, advance consent for customers or affiliates is important.

Exclusivity and operating obligation

Common in retail, rare in logistics: exclusivity clauses only make sense in multi-let schemes in exceptional cases. An obligation to operate hardly suits warehouses whose utilisation varies by season.

Green leases, solar power and charging

Energy and sustainability have become an integral part of modern logistics leases. There is no binding green lease standard. Common building blocks, combined depending on the property:

Sharing consumption data for ESG reporting, certifications and EU Taxonomy requirements.
Rules on rooftop solar: ownership, operation, access, liability and who uses the power. Options include supply to the tenant, tenant power schemes, grid feed-in or letting the roof to third parties.
Charging infrastructure for e-trucks and cars: who invests, who operates, how power and grid capacity are allocated.
Obligations for energy-efficient operation, LED lighting and coordination of upgrades.
Tenant obligations to tolerate energy upgrades and installations on the roof and external areas.

The Building Modernisation Act has been partly in force since late July 2026 and is gradually replacing the Building Energy Act. From 2027, solar obligations apply to new non-residential buildings, among other things; charging points at parking spaces are governed by the Building Electromobility Infrastructure Act. Long-term leases should specify who implements and pays for future statutory obligations.

Lease
Roof and yard belong in the lease.

Handover, return and reinstatement

A detailed handover report with photos, meter readings and the condition of the floor, doors, dock levellers and technical systems is the best protection for both sides. On return, it is compared with the actual condition.

Set clear reinstatement obligations for racking, conveyors, partitions, floor markings and drill holes.
Agree whether installations can be taken over against payment instead of being removed.
Distinguish normal wear and tear, especially of the industrial floor from forklifts, from damage.
Set deadlines for return, inspection and repayment of the deposit.

Lease
A good handover report prevents disputes.

Key clauses from both perspectives

Clause	Tenant looks for	Landlord looks for
Term and options	Flexibility, extension options, break rights	Long fixed term for financing and valuation
Indexation	Threshold, partial pass-through, valid clause	Validity under the Price Clause Act and standard-terms law
Lettable area	Traceable measurement, site plan	Clear allocation of outdoor and roof areas
Service charges	Exhaustive list, caps	Full recovery of operating costs
Repairs	Cost cap, no structural repairs	Clear demarcation, tenant maintenance duties
Permitted use	Broad use, permit risk with landlord	No risk from changes of use and hazardous goods
Subletting	Advance consent for customers and group	Consent requirement, subtenant's credit
Fit-out and reinstatement	List of permitted installations, payment instead of removal	Full reinstatement, security for reinstatement costs
VAT	Clear use rules	Obligation to make VAT-able supplies, compensation
Energy and ESG	Access to low-cost solar power, charging points	Data sharing, roof use, toleration of upgrades

Lease
Clarity in the lease saves disputes later.

From first offer to signature

Define requirements
Set area, height, doors, outdoor space, use, timing and budget before requesting offers.
Scan the market
Compare public listings and space that is not advertised. A search mandate brings the market into one hand.
Record terms in an LOI
Summarise rent, term, incentives, fit-out and handover date in a letter of intent before drafting the lease.
Inspect the building
Check technology, permits, fire protection, floor load and grid connection on site and in the documents.
Negotiate the lease
Negotiate clauses with a view to costs, risks and exit; have them reviewed legally and for tax.
Sign and hand over
Define the execution version, provide security, record the handover.

Checklist: warehouse lease

These points should be settled before signing:

Contracting parties, representation and credit checked
Lettable area per the agreed measurement standard, site plan attached
Technical specification: clear height, floor load, doors, sprinklers, grid connection
Permitted use covers the planned operation, permits clarified
Term, extension options and break rights
Index clause valid under the Price Clause Act and standard-terms law, correct base month
Exhaustive list of service charges with caps
Maintenance and repairs with a cost cap, structure and roof with landlord
VAT option and use obligations settled
Type and amount of rent security agreed
Subletting and transfer to affiliates
Tenant fit-out, reinstatement and return condition
Fire protection, insurance and hazardous goods
Solar power, charging infrastructure and data sharing
Execution version in text form clearly designated

Frequently asked questions

Does a commercial lease for a warehouse in Germany still require written form?

No. Since 1 January 2025, text form is sufficient for commercial leases of more than one year, and since 2 January 2026 this also applies to older leases. If text form is not met either, the lease is deemed open-ended and can be terminated with statutory notice.

How long does a lease for a logistics building run?

This is freely negotiable. In practice, three to ten years are common for existing halls and ten to fifteen years for new builds and build-to-suit projects, often with extension options.

What notice period applies to a commercial lease?

If no fixed term is agreed, section 580a(2) BGB applies: notice by the third working day of a quarter, effective at the end of the following quarter. A fixed-term lease generally cannot be terminated with ordinary notice before expiry.

Is indexed rent permitted in a German commercial lease?

Yes, if it is linked to an official price index, works both ways and the lease is designed for at least ten years, for example through a fixed term, the landlord's waiver of termination or the tenant's extension option. Since a Federal Court of Justice ruling of March 2026, a standard-form clause must also be transparent and fair; otherwise it is void from the outset.

Which service charges can the landlord of a logistics building pass on?

All costs clearly and exhaustively agreed in the lease, such as property tax, insurance, maintenance, external areas and management. Limits apply to structural and roof repairs and to uncapped repair costs for shared areas.

What does triple net mean for logistics property?

Under a triple-net lease the tenant bears not only operating costs but also maintenance and repairs, including structure and roof. In Germany this is mainly found in single-let buildings with long terms; double net is more common.

How high is the deposit for a commercial lease?

There is no statutory cap. Three to six months' gross rent as a cash deposit or bank guarantee is common; groups may also provide parent guarantees or letters of comfort.

Do I have to remove racking when moving out?

Usually yes, unless the lease provides otherwise. It is sensible to agree at signing which installations may remain, whether they can be taken over against payment and how drill holes and anchoring in the industrial floor are dealt with.

How does LÈMANS support lettings?

We find suitable halls, including off-market, compare terms and support negotiations from letter of intent to signature. Tenants and landlords work with their lawyers on the legal review; we make sure the commercial terms and technical requirements are fully reflected in the lease.

Glossary

The right building, the right lease.

Looking for a logistics building or wanting to let your space? We find suitable properties, including off-market, and support negotiations through to signature.

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