Faced with a commercial vacancy rate reaching record levels in France—peaking at nearly 11.7% in city centers—lawmakers recently addressed this economic emergency. However, the particularly bold bill aimed at regulating the commercial rental market, which was debated on Wednesday, March 25, 2026, was ultimately rejected by the Senate, with 227 votes against and 113 in favor.
This bill, initially introduced in November 2025, aimed to establish a genuine framework for commercial lease rents by drawing on existing mechanisms for residential housing – on an experimental basis. Among the bill’s key measures were the creation of local observatories to monitor actual rental rates, as well as the transfer of the property tax burden, which could no longer be passed on to the tenant. The bill also provided for granting mayors new legal tools to better regulate the establishment of retail businesses exceeding 400 square meters in size.
While representatives of business owners pointed out that rent currently accounts for nearly 30% of their operating costs, the bill faced opposition from the Senate majority and the government, who feared the creation of an overly complex system that would discourage investment. Opponents of this bill are reportedly pushing for a targeted reform of the tax on vacant commercial properties. The goal of this alternative would be to discourage property owners from voluntarily leaving spaces vacant to avoid devaluing their assets.
Even though this proposed law—which would have structurally altered the balance of commercial leases—has now been shelved, the fundamental debate remains open. Clearly, controlling the cost of rental space is a crucial issue for retail chain executives, and we will continue to monitor this matter closely to keep you informed of any future legislative developments in this area.