Lyon and Bordeaux Mayors Advocate for Oversight of Commercial Rents to Prevent Shop Vacancies

october 1, 2025

French cities Demand Rent Control for Local Businesses

Lyon and Bordeaux are seeking government assistance to stabilize commercial rental costs, responding to a growing crisis impacting small retailers and teh vibrancy of city centers. The move comes as vacancy rates surge and autonomous businesses face an increasingly competitive landscape.

A bustling shopping street in Lyon, France. © Nicolas Goisque / Maxppp

Rising Vacancies Signal Struggling Trade

A joint letter, signed by Lyon Mayor Grégory Doucet and Bordeaux Mayor Pierre Hurmic, formally requests a pilot program to oversee commercial rent prices within their cities. The mayors highlight a significant increase in commercial vacancies, reaching 14% in 2024, a sharp rise from 6% in 2010. This trend signals deep-seated issues within the local economies.

The officials state that proximity-based trade is experiencing a profound crisis, with merchants reporting consistent difficulties. Business closures are multiplying across sectors including clothing retail, restaurants, and local service providers, all sectors already burdened by prior social, health, and economic disruptions.

Competition from Online Markets Intensifies Pressure

Adding to the challenge, the mayors point to aggressive competition from online sales platforms, particularly those based in China, which operate with lower overhead and aggressive pricing strategies. This creates an unsustainable habitat for smaller, independent retailers.

“Added to this, the fierce competition of online sales with Chinese platforms that impose deregulated prices and unbearable rhythms for the smallest players.”

Grégory doucet, pierre Hurmic

Mayors of Lyon and Bordeaux

Proposed Rent Supervision Model

The proposed solution mirrors accomplished models used for residential rent control, which the mayors argue have yielded positive results. They emphasize the need for a collaborative approach, stating that local initiatives alone are insufficient to address the complex issue of commercial rent prices. The cities have already established “Office of Trade” programs to support businesses, but acknowledge a wider intervention is now required.

Fabrice Bonnot, a prominent restaurateur and head of the charity-Bellecour traders association, has publicly endorsed the initiative, deeming it crucial for protecting independent businesses and preserving the unique character of city centers.

“I am in favor of it, but the lessors should not be frightened. You have to go slowly, the period is already quite complex like that. It is indeed a measure that goes in the right direction,it should save shops.”

Fabrice Bonnot

Restaurateur, president of an association of merchants

bonnot also cautioned against alarming landlords, suggesting a phased implementation. He stressed the urgency of the situation, asserting that protecting businesses is paramount, even acknowledging the challenges posed by ongoing municipal works in Lyon.

City	Commercial Vacancy Rate (2010)	commercial Vacancy Rate (2024)
Lyon	6%	14%
Bordeaux	6%	14%

As of today, the Prime Minister’s office has yet to respond to the mayors’ request. The outcome of this appeal could set a precedent with nationwide implications.

Understanding Commercial Rent Trends

Commercial rent prices are influenced by a variety of factors, including location, foot traffic, property size, and overall economic conditions. According to a recent report by real estate firm Cushman & Wakefield,prime retail rents in major European cities have increased by an average of 3.5% over the past year. This rise underscores the growing pressure on businesses to manage escalating costs.

Did You know? Small businesses contribute approximately 44% of U.S. economic activity, according to the Small Business Administration.

pro Tip: Negotiate lease terms carefully, including rent escalation clauses and options for renewal.Consider alternative locations or shared spaces to reduce overhead costs.

Frequently Asked Questions About Commercial Rent Control

• What is commercial rent control? Commercial rent control is a system of regulations designed to limit the amount landlords can charge for commercial properties.
• Why are commercial rents increasing? Factors like high demand in prime locations, rising property values, and economic growth contribute to increasing commercial rents.
• What impact do high commercial rents have on businesses? High rents can squeeze profit margins, force businesses to raise prices, or even lead to closures.
• What are the potential benefits of rent supervision? Rent supervision aims to stabilize costs for businesses, preserve the diversity of retail offerings, and revitalize city centers.
• Are there any downsides to commercial rent control? Critics argue that rent control can discourage investment in commercial properties and lead to a shortage of available space.
• What is the current state of the retail industry? The retail industry is undergoing significant transformation, with increased competition from online retailers and changing consumer preferences.
• How can small businesses mitigate rising rent costs? Small businesses can explore options like negotiating leases, seeking alternative locations, and implementing cost-saving measures.

What steps do you beleive cities should take to support their local businesses? Share your thoughts in the comments below!

Do you think rent control is a viable solution for supporting small businesses, or are there other approaches that would be more effective?

What potential impacts could Lyon’s proposed mediation service have on the efficiency of commercial lease dispute resolution?

the Growing Crisis of Empty Storefronts

The heart of many European cities – their bustling commercial districts – is facing a growing threat: shop vacancies. Increasingly high commercial rents are being cited as a primary driver, forcing autonomous businesses to close and leaving city centers looking increasingly desolate. Now, the mayors of Lyon and Bordeaux are taking a stand, advocating for increased oversight of commercial lease agreements and rent control measures to revitalize their local economies. This move reflects a wider trend across France and Europe, where cities are grappling with the impact of rising property values on retail businesses.

Mayoral Proposals: A Deep Dive

Both Lyon Mayor Grégory Doucet and Bordeaux Mayor Pierre Hurmic are proposing different, yet complementary, approaches to address the issue.

* Lyon’s Focus: Transparency and Mediation. Mayor Doucet is pushing for greater transparency in commercial property valuations. The aim is to prevent landlords from arbitrarily inflating rents, notably during lease renewals.He’s also proposing a mediation service to help resolve disputes between landlords and tenants, offering a less adversarial option to lengthy and costly legal battles. This initiative directly addresses concerns about rent increases impacting small businesses.

* Bordeaux’s Focus: Zoning and Rent Caps. Mayor Hurmic is advocating for a more interventionist approach, exploring the possibility of zoning regulations that limit the types of businesses allowed in certain areas, coupled with potential rent control measures for commercial properties. This is a bolder step, aiming to preserve the diversity of Bordeaux’s retail landscape and prevent the dominance of large chains. the proposal is centered around protecting the unique character of the city center.

Why are Commercial Rents Soaring?

Several factors contribute to the escalating cost of commercial real estate:

1. Increased property Values: Overall property values in desirable city center locations have risen substantially in recent years, driving up rents.
2. Investor Demand: Commercial property is often seen as a safe investment, attracting both domestic and international investors, further inflating prices.
3. Competition from Large Chains: National and international retail chains frequently enough have deeper pockets and can afford to pay higher rents, squeezing out smaller, independent businesses.
4. Post-Pandemic shifts: The COVID-19 pandemic accelerated the trend towards online shopping, impacting foot traffic in physical stores and, in certain specific cases, leading landlords to increase rents on remaining tenants to compensate for lost income. This has created a challenging surroundings for retail spaces.

The Impact of Shop Vacancies: Beyond aesthetics

Empty storefronts aren’t just an eyesore; they have a significant negative impact on the overall health of a city:

* Economic Decline: Reduced retail activity leads to lower tax revenues for local governments.

* Loss of Jobs: Business closures result in job losses, impacting local employment rates.

* Decreased Foot Traffic: Empty shops discourage people from visiting the area, further harming remaining businesses.

* Social Impact: A decline in local businesses can erode the sense of community and local identity. The presence of thriving local shops is vital for a vibrant city.

* “No Commercial value” situations can arise where properties remain unoccupied for extended periods, contributing to urban decay.(See Baidu Know definition for context).

Case Study: Barcelona’s moratorium on New Tourist Licenses

while not directly related to commercial rents, Barcelona’s 2015 moratorium on new tourist licenses offers a relevant example of a city taking decisive action to address a perceived imbalance in its urban landscape. the move aimed to protect residential housing from being converted into tourist accommodations, preserving the character of neighborhoods and ensuring affordability for residents. This demonstrates a willingness to intervene in the property market to achieve broader social and economic goals,a principle that resonates with the current proposals in Lyon and Bordeaux.

Benefits of Rent oversight for Small Businesses

Implementing measures to control commercial lease rates could provide significant benefits for small and medium-sized enterprises (SMEs):

* Increased Financial Stability: Predictable and affordable rents allow businesses to better manage their finances and invest in growth.

* Reduced Risk of Closure: Lower rent burdens reduce the risk of businesses being forced to close due to unsustainable costs.

* Greater Innovation: Financial stability allows businesses to focus on innovation and improving their offerings, rather then simply surviving.

* Preservation of Local Character: Supporting independent businesses helps to maintain the unique character and diversity of city centers.

Practical Tips for Businesses Negotiating Commercial Leases

Even without formal rent control, businesses can take steps to protect themselves during lease negotiations:

1. Seek Legal Advice: Consult with a lawyer specializing in commercial property law to review the lease agreement and ensure it’s fair.
2. Research Comparable Rents: Gather information on rental rates for similar properties in the area to establish a benchmark.
3. Negotiate Renewal Options: Include options to renew the lease at pre-persistent rates to provide long-term security.
4. Understand All Costs: Be aware of all associated costs, including common area