Commercial Lease Agreements in Turkey: Key Rules and Tenant Protections

Commercial tenants in Turkey — whether operating a shop, restaurant, office, factory or warehouse — are subject to a specialised body of law that governs the terms on which they may be evicted, how their rent may be increased, and what compensation they are entitled to when things go wrong. Understanding the rules that apply to roofed commercial premises (çatılı işyeri) is essential for any business operating under a lease in Turkey.

What Is a "Roofed Commercial Premises" Lease?

Under TBK Art. 339, the special rules for residential and commercial leases apply to properties that are enclosed and roofed and used for commercial or professional purposes. This covers shops, offices, restaurants, workshops, factories and warehouses. Open-air parking areas, unenclosed storage sites and similar properties do not fall within this category and are governed by general contract principles.

Key Differences from Residential Leases

Although residential and commercial leases under the TBK share the same statutory framework (Arts. 339–378), their practical application differs in important ways.

Scope of Tenant Protection

Residential tenants typically receive more intensive statutory protection, reflecting their weaker bargaining position and the essential nature of housing. Commercial tenants operate in a business context and have greater freedom to negotiate the terms of their lease. That said, the TBK's mandatory provisions protect commercial tenants from the most one-sided arrangements.

Compensation in Eviction

When a commercial tenant is unlawfully evicted or evicted on a false pretext, the assessment of loss is far more complex than in residential cases:

• The tenant may have made substantial fit-out and refurbishment investments in the premises.
• There may be a goodwill and client-base attached to the business at that address.
• Relocation and reinstallation costs for commercial operations typically dwarf those of a household move.
• Trading losses during the period of forced relocation may be claimable.

Courts assess commercial damages on the facts; potential awards are far larger than in residential eviction cases.

Rent Increases and the CPI Cap

Commercial leases are subject to exactly the same rent increase rules as residential leases. TBK Art. 344 applies equally: increases are capped at the preceding year's CPI rate, and after five years the court may set the rent by reference to market comparables. The landlord cannot apply exchange rate movements, construction cost indices or other benchmarks as a substitute for CPI.

Rent Determination After Five Years

The rent determination lawsuit (kira tespiti davası) operates identically for commercial premises and residential ones. However, in commercial cases the expert witness assessment is more complex:

• The expert must assess location value (main street vs. side street, footfall, visibility),
• Infrastructure (power supply, loading bay, refrigeration, ventilation),
• Trading potential of the specific type of premises,
• Market rent for comparable commercial units.

For large warehouses, factories or prominent retail units, monthly rents can run into hundreds of thousands of lira, and the resulting litigation involves proportionately higher court fees and expert costs.

Drafting the Lease: Critical Provisions

Permitted Use Clause

The lease must specify the exact commercial activity for which the premises are let. Using the premises for a different purpose can constitute a material breach justifying termination.

Fit-Out and Alteration Rights

A business tenant typically needs to install signage, partition walls, electrical wiring, air conditioning and other alterations. These rights must be expressly granted in the lease; without a written authorisation from the landlord, the tenant risks being required to restore the property to its original condition on vacating.

Assignment and Sub-Letting

TBK Art. 357 prohibits assignment or sub-letting without the landlord's consent. In commercial transactions — particularly where a business is sold as a going concern — the lease is a key asset. The conditions under which assignment is permitted should be negotiated at the outset and clearly set out in the lease.

Demolition and Redevelopment Risk

TBK Art. 350/2 allows a landlord to seek eviction if the property must be substantially repaired, rebuilt or redeveloped in a way that requires the tenant to vacate. For long-term commercial tenants who have invested heavily in a fit-out, this risk is significant. The lease should address notice periods and compensation in this event.

Grounds for Eviction

Two Justified Warning Notices (TBK Art. 352/2)

If the tenant is twice in arrears with rent within a single lease year, and the landlord sends legally compliant notice each time, the landlord may bring an eviction claim within one month of the end of the lease period.

Personal Need (TBK Art. 350/1)

The landlord may evict for their own business need — provided they can demonstrate that they genuinely intend to use the premises for the specified purpose. As with residential need, the three-year re-letting prohibition applies (TBK Art. 355).

Demolition or Reconstruction (TBK Art. 350/2)

Where substantial works are required that cannot be carried out while the tenant remains, eviction may be sought, subject to proper notice and compensation obligations.

New Owner's Need (TBK Art. 351)

A new owner who acquires the property subject to a running lease may invoke personal need, provided the statutory notification and waiting period requirements are met.

Protections Available to the Commercial Tenant

Fixed-Term Lease as a Shield

A fixed-term lease substantially restricts the landlord's ability to evict before the term expires. During the fixed term, only serious breach (such as rent arrears) or statutory grounds can justify early termination.

The Three-Year Re-Letting Ban

After a need-based eviction, TBK Art. 355 prohibits the landlord from re-letting to anyone other than the former tenant for three years. Breach triggers a compensation claim — which in a commercial context can be very significant.

Challenge to Sham Eviction Timetables

Yargıtay scrutinises whether the claimed need is genuine. A landlord who evicts a long-established commercial tenant, then re-lets the premises to a new tenant within the three-year period, faces the full force of the compensation obligation.

Common Practical Problems

Absence of a written lease: commercial lettings without written agreements are common but leave tenants poorly protected. Proof of rent levels, permitted use, and agreed conditions all become contested.

Lease term ambiguity: a lease that is meant to be fixed-term but lacks a clear expiry date, or contains poorly drafted renewal clauses, can inadvertently become open-ended — changing the eviction rules that apply.

Assignment disputes: a business sale involving the lease without landlord consent can expose both parties to termination claims.

Legal Assistance

Commercial lease negotiations and disputes involve significant financial stakes. MONA HUKUK advises businesses operating from commercial premises in Antalya — from lease drafting and review, through rent determination and eviction proceedings, to compensation claims.

Contact us at contact@monahukuk.com or call +90 (242) 606 14 32 to schedule a consultation.