Commercial Lease Agreement
What should a foreign business check in a Turkish commercial lease?
Quick Answer
A foreign business should verify the landlord’s authority, permitted use, rent and adjustment mechanism, security, fit-out approvals, renewal, termination and assignment before signing an office, shop or warehouse lease in Türkiye. The principal lease rules are in Turkish Code of Obligations No. 6098; the result depends on the premises and contract.
Start with the premises, not the template
A commercial lease gives a business the right to use premises; it does not transfer ownership. Turkish Code of Obligations No. 6098 provides the principal lease framework. The first review should confirm the landlord's right to lease the property, the exact address and area, whether the intended activity is permitted, and whether the premises can obtain the licences and fit-out approvals the tenant needs.
A foreign company opening an office, store or warehouse should not sign a global lease template without adapting it to the property and the Turkish operating entity. A lease signed by a group company that will not operate the premises may create avoidable registration, payment and liability questions.
Clauses to negotiate before paying a deposit
- Rent: amount, payment currency, VAT and other charges, indexation and any later rent review.
- Security: deposit or bank guarantee, conditions for use and return, and the statutory rules for qualifying roofed workplace leases.
- Use and works: permitted business activity, licences, signage, fit-out approvals, restoration and handover condition.
- Risk: repairs, insurance, service charges, utilities and interruption of access.
- Exit: renewal, early termination, assignment, subletting and change of control.
Rent increases and security
For qualifying roofed workplace leases, Article 344 of the Code of Obligations regulates annual rent increases by reference to the statutory twelve-month average CPI framework. After the relevant five-year period, rent determination may follow a different judicial assessment. The lease term, renewal history and any foreign-currency rule should therefore be checked before presenting a future rent figure as fixed.
Article 342 also limits certain cash or negotiable-paper security for residential and roofed workplace leases and sets rules for holding it. The commercial team should distinguish a statutory deposit from a separate bank guarantee or parent-company support before accepting a landlord's proposed package.
Renewal, termination and disputes
A fixed end date does not automatically give a landlord a free right to evict a protected commercial tenant. Conversely, a tenant's early exit may create continuing rent exposure if the contract and statutory rules are ignored. Rent default, valid eviction undertakings, need, redevelopment and long-term extension rules each have different conditions and deadlines. Many lease disputes require mediation before litigation, subject to statutory exceptions.
Foreign tenant document checklist
- Landlord identity, title or authority evidence, and any existing encumbrances or occupancy issues.
- Draft lease and annexes, including plan, inventory and handover report.
- Company registry extract, signer authority and any foreign parent guarantee.
- Municipal and sector permissions needed for the proposed business use.
- Budget for rent, deposit, fit-out, service charges and taxes.
- An exit scenario: branch closure, sale of the Turkish business or relocation.
For a detailed landlord or tenant review, see our real-estate and commercial-lease services. The lease termination and rent adjustment terms address separate questions.
Official source
Turkish Code of Obligations No. 6098, official legislation portal
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