The Primerus Paradigm - Fall 2016 Page 39

F A L L 2 0 1 6

It is too early to say if the reform
will take root, if the landlords will
effectively increase their negotiating
power because of this major flexibility
in comparison with the past, or instead
if the parties would prefer at the end to
remain within the "old" law. At least,
because of this new legal framework, the
legal professionals are currently going
through a quite radical change since they
will now face proper negotiation sessions
for all clauses of the lease agreement
for major properties. We have no doubt
that soon standard solutions like in the

mergers and acquisitions sector will be
developed, within the "shell" elaborated
by Italian case law.

1 Needless to say that Italian streets offer a selection of

clothing, jewelry, watches and beauty boutiques, as well
as technology objects, and fabulous restaurants and
gourmet shops.

2 2015 data provided by Reno S.r.l. - a service provider

specialized in retail tenants representation and
strategic consultancy - show that locations bordering
center in Milan, such as at Via Dante, are about Euro
1,500 to Euro 2,500 Euro per sq. m., at corso Vercelli
are about Euro 1,000 to Euro 1,500 per sq. m., at corso
Buenos Aires are about Euro 1,000/mq to 2,000 per
sq. m.; premium locations in North Italy cities are on
average from Euro 1,500 to Euro 3,000 per sq.m., save
for top premium location for Verona e Venezia, whose
rents are obviously much more expensive, whilst Varese
(Euro 1,000 to 2,000 per sq.m.), and Como (Euro
1,500 to 2,500 per sq.m.) are growing faster due to the
favorable exchange rate with the Swiss Franc.

3 Agreements on major properties lease need to be

proved in writing and in any case can not apply to
contracts which are already in force at the date of
conversion of the law n. 164/2014.

4 According to the law, the lessee has a pre-emption

right in case the lessor sells the real estate or the
lessor terminates the lease after the initial period and
rents the real estate to a third party. The rule is not
applicable in case the termination of the contract is
attributable to the lessee and in case the commercial
activity is not open to the public.

5 According to the law, the lessee has the right to receive

an indemnification equal to 18 months of the last
rent paid in case the termination of the contract is
attributable to the lessor and the commercial activity is
open to the public. The lessee has the right to receive
a further indemnification equal to 18 months of the last
rent paid, if in the new store the same/similar activity
as that of the former lessee is being carried out and
such new activity is started within one year from the
termination of the former lease agreement.