Facts
[B. SA] (tenant, respondent to the appeal) has been operating a fashion store in the property on [U.] Street in [V.] since 1913. On January 4, 2005, it concluded a lease agreement with the then owner of this property, [C. AG] , for a fixed term of ten years, i.e., from January 1, 2005 to December 31, 2014. [B. SA] exercised the contract extension options on April 3, 2013 and November 14, 2014, thus extending the contract term at least until December 31, 2024.
In November 2014, [A. SA] acquired the property. By official form dated June 13/14, 2016, it terminated the tenancy as of December 31, 2024, citing "own use" as the reason and specifying on July 13, 2016 that it wanted to use the sales area for its own purposes.
[B. SA] challenged the termination with the Conciliation Authority for Tenancy Matters of the District of Zurich and claimed the invalidity of the termination. Alternatively, it requested the extension of the tenancy agreement until December 31, 2030.
Considerations
The Federal Supreme Court states that an extension of the tenancy agreement pursuant to Art. 272 CO can only be considered if the termination of the tenancy would result in hardship for the tenant or their family that would not be justified by the landlord's interests. The Tenancy Court and the High Court wrongly assumed that the mere fact that the termination was issued more than eight years before the intended termination date would exclude an extension.
The Federal Supreme Court notes that the ordinary circumstances associated with a termination, such as…