Construction Costs Index
CCI
CCI
The Construction Costs Index was mainly used to revise commercial property leases (Commercial Code, Act No. 2001-1168 of 11th December 2001 art. 33 V Official Journal of 12th December 2001, Articles L145- 33 and L145 -34). Since the Act 2014-626 of 18th June 2014 (Article 9) which amends the former act and the article L145-34 of the Commercial Code resulting two indices can be used for the revision of commercial property leases:
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The Commercial Lease Index (ILC) for commercial and craft activities;
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The Tertiary Activities Rent Index (TARI) for tertiary activities other than commercial which are carried on in business premises, including in particular professions and activities in logistics warehouses.
From 1rst September 2014, the Construction Costs Index (CCI) is no longer part of the proposed indices as benchmark for professional or commercial lease indices. According to the activity, the ILC or TARI will serve as reference for the review or the conclusion of commercial rentals.
CCI enters the composition of ILC and TARI up to 25%.
The decree No. 2008-1139 of 4th November 2008 on the Commercial Lease Index and the decree No. 2011-2028 of 29th December 2011 relating to the Tertiary Activities Rent Index define the activities concerned and the modalities of calculation and publication of these indices.
The Construction Costs Index, the Commercial Rent Index and the Tertiary Activities Rent Index are subjects of a publication in the Official Journal. The date of publication of the index in the Official Journal serves as a reference.
Formerly, the Construction Costs Index was also used in the review of residential leases. Since 2006, the Rent Reference Index (IRL) has been the only official reference on the subject and since 2008, the CCI has no longer been used in its composition.