How to Lease a Commercial Space or Office in Bogotá and Medellín: Regulations, Contract, and Rent

Leasing an office or commercial space in metropolises like Bogotá or Medellín requires understanding that the rules of the game are completely different from those of traditional housing.

Unlike residential properties, commercial spaces and offices are not governed by the Urban Housing Lease Law. They are covered by the Commercial Code of Colombia, which grants greater contractual freedom but also imposes specific legal duties that every owner must master. In this practical guide, we will review how to structure a solid contract, set the appropriate rent in Bogotá and Medellín, verify land use, and find direct tenants without intermediaries.

1. Legal framework for commercial leasing: Commercial Code vs. Law 820

The most common mistake for beginner landlords is drafting a commercial contract using residential lease templates. Law 820 of 2003 exclusively regulates urban housing. Instead, the leasing of commercial establishments and offices is regulated by the Commercial Code of Colombia (Decree 410 of 1971), specifically in its Articles 518 to 524.

To delve into the general legal aspects, we recommend reviewing our guide on the Commercial Code. The three fundamental pillars you should know before signing are the following:

• Right to renewal (Article 518): When a commercial tenant has occupied a property consecutively for two (2) years or more with the same commercial establishment, they acquire the legal right to renewal of the contract upon the expiration of the term, except for the exceptions provided by the regulation.
• Landlord exceptions: The landlord can only refuse to renew the contract under three specific grounds contemplated in Article 518: breach of contract by the tenant, the need for the property for their own housing or for an establishment of theirs intended for a substantially different business, or when the property must be rebuilt or repaired with works that cannot be executed without handing over or vacating the premises.
• Eviction and notice (Article 520): If you are going to invoke the grounds of personal use or reconstruction, you must notify the tenant with no less than six (6) months' notice before the contract expiration date. If you fail to do so within that period, the contract will be understood as renewed or extended under the same conditions and for the same term as the initial contract.

2. How to set the rent and adjustments in Bogotá and Medellín

In residential leasing, the annual rent adjustment is capped by the official inflation (CPI) of the previous year. In the commercial sector, the landlord and tenant agree on the initial rent amount and the formula by which it will be updated.

When structuring the rent in Bogotá or Medellín, put these points in writing:

1. Taxes: Clarify in the contract whether the agreed value includes or excludes taxes that apply according to the tax situation of the parties, and confirm the treatment with an accountant.
2. Agreed adjustment clauses: Define a clear annual formula between the parties. Review how rent increase rules work to distinguish the residential regime from the commercial one and prevent disputes.
3. Horizontal property management fee: In office buildings on Calle 100 or El Poblado, clearly specify whether the ordinary management fee is included in the monthly rent or if the tenant must pay it independently directly to the management.

3. Land Use Verification (POT) and commercial guarantees

Before handing over the keys to a commercial space in sectors like Chapinero in Bogotá or Laureles in Medellín, it is advisable to perform two critical validations: the legality of the commercial activity and the financial profile of the company.

If you are looking for context on the urban dynamics of the Antioquian capital, you can consult our guide on direct leasing in Medellín.

To protect your property, use this checklist:

• Land Use (POT): Verify with the competent planning authority that the tenant's commercial activity is permitted for that exact address.
• Chamber of Commerce Certificate and RUT: Request the updated mercantile registration of the company or natural person to validate the legal representation and the company's age.
• Financial information: Ask for proportional and relevant supporting documents to evaluate payment capacity, taking care of personal and financial data.
• Compliance guarantees: Evaluate a policy, co-debtor, or other appropriate guarantee with the tenant, and review the conditions before signing.

4. How to publish your commercial property directly without paying commissions

The traditional commercial brokerage scheme involves intermediation costs. Today, owners in Bogotá and Medellín can also manage their properties directly, connecting with entrepreneurs and companies.

When preparing the publication of your office or commercial space, make sure to follow the steps to publish an office or space efficiently:

• Technical and space photographs: Take photos with natural light showing the main room, street windows, bathrooms, loading area, and parking spots.
• Key specifications sheet: Detail the private area in square meters (m²), electrical capacity, ceiling height, water points, and network availability.
• Location and accessibility: Highlight proximity to main roads and mass transit stations, without promising uses that you haven't verified.

Frequently asked questions

Below we answer the most common legal and commercial questions when leasing commercial spaces and offices in Colombia:

❓ What is the difference between a commercial and residential lease in Colombia?

A commercial lease is governed by the Commercial Code (Articles 518 to 524) and allows freedom of negotiation regarding rent and adjustments. Residential leasing is regulated by Law 820 of 2003, which does limit annual increases.

❓ When does the tenant acquire the right to contract renewal?

The tenant acquires the legal right to renewal upon completing two consecutive years of occupation with the same commercial establishment, according to Article 518. There are legal exception grounds provided in that same article.

❓ How much notice must the landlord give if they need the commercial space?

The landlord must send written notice of eviction at least six months before expiration when invoking personal use or reconstruction. This is the rule of Article 520 of the Commercial Code.

❓ Is there a legal cap for the annual commercial rent increase?

There is no residential IPC cap for commercial rent. The annual adjustment for premises and offices is agreed upon between the parties in the contract; it is advisable to leave a clear formula and review each case with professional advice.

❓ What documents can be requested before signing a commercial contract?

It is customary to request a Chamber of Commerce certificate, RUT, and relevant financial records, in addition to verifying the permitted use of the property. The insurance policy, co-debtor, or other guarantees depend on the agreement and risk analysis.

❓ Where can I list a commercial space or office for rent without paying a commission in Colombia?

You can list your commercial property directly on Colombia Move. The platform allows you to connect with interested parties in Bogotá, Medellín, and other cities in the country without intermediaries or brokerage costs.