Law 49-16 (Commercial Leases)

Detailed explanation

Law 49-16 replaced the 1955 dahir with a modern, balanced framework. Key protections include the right to renewal after 2 years of occupation, eviction indemnity (indemnité d'éviction) compensating loss of goodwill and relocation, triennial rent review capped against abrupt jumps, and minimum 2-year written lease form. It shapes valuation practice — leased tertiary and retail assets trade at tighter cap rates due to tenant stability, while vacant-possession premiums reach 10-20%.

Moroccan example

Related terms