Informations Rapides · 29 March 2024 · n° 85

In Q4 2023, the tertiary activities rent index rose by 5.55% over a year Tertiary activities rent index - fourth quarter 2023

Article 63 of the Act of 17 May 2011 to simplify and improve the quality of law (Act 2011-525) introduces the index of rents for tertiary activities (ILAT). The 2011-2028 decree of 29 December 2011 defines the methods of calculation and publication of this index, as well as the activities concerned. The ILAT is published towards the end of the third month following the quarter under review.

The index of rents for tertiary activities (ILAT), calculated on a quarterly basis, is made up of the weighted sum of indices representing the level of consumer prices, new construction prices and gross domestic product in value.

The index representing the level of consumer prices is the consumer price index excluding tobacco and rents for all households in metropolitan France and the overseas departments published by the National Institute for Statistics and Economic Studies (INSEE). The calculation of the index of rents for tertiary activities uses the average of this index over twelve consecutive months, the last month corresponding to the last month of the quarter for which the index of rents for tertiary activities is calculated.

The index representing the price level of new construction is the construction cost index (ICC) published by INSEE. The calculation of the index of rents for tertiary activities uses the average of this index over four consecutive quarters, the last quarter corresponding to the quarter for which the index of rents for tertiary activities is calculated.

Gross domestic product in value terms is measured from the total gross domestic product – valued at current prices, adjusted for seasonal variations and working days (GDP) published quarterly by INSEE. The calculation of the index of rents for tertiary activities uses the average over four consecutive quarters of the gross domestic product in value adjusted for seasonal variations and working days, the last quarter corresponding to the quarter for which the index of rents for tertiary activities is calculated (MoyPib).

The three components are scaled so that their Q1 2010 value equals 100 and weighted according to the following formula:

Tertiary activities rent index = 50% mIPCL + 25% mICC + 25% mPib

The tertiary activities rent index is not revised.

Uses

Under the terms of Act 2014-626 of 18 June 2014 (Article 9), which amends Article L. 145-34 of the Commercial Code, two indices may be used for the revision of leases for business premises:

- the commercial rent index for commercial and craft activities;

- the index of rents for tertiary activities for activities other than commercial and craft activities.

Next issue: end of June 2024.