Commercial Lease Index / ILC

Sources
Dernière mise à jour le : 07/07/2017

Présentation de l'opération

Organisme producteur :

Insee. Direction des statistiques d'entreprises (DSE)

Type d'opération :

Prices Index

Objectifs :

Indexing of commercial leases.

The Commercial Lease Index (ILC) was introduced by Article 47 of Law no. 2008-776 on the modernization of the economy of 4 August 2008 introduced the Commercial Rent Index (ILC).

Since the Act 2014-626 of 18 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:

- The Commercial Lease Index (ILC) for commercial and craft activities;

- 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.

Decree no. 2008-1139 of 4 November 2008, relating to the commercial rent index, defines the calculation and publication procedures for this index, in addition to the indices concerned.

Champ de l'opération

Champ géographique :

Metropolitan France

Caractéristiques techniques

Périodicité de l'opération :

Quarterly

Méthodologie :

The ILC is calculated as the weighted sum of three indices:

- Consumer Price Index, excluding tobacco and rents, published for all households in Metropolitan France and French Overseas Departments (IPCL)

- Cost-of-construction (ICC) index

- Retail Trades Index, in value, corrected for seasonal variations and calendar effects (ICAVaCD).

These three indices are used to calculate the ILC with the following weighting:

Quarterly Commercial Lease Index (ILC) = 50% mIPCL + 25% mICC + 25% mICAVaCD.

Each of the three indices comprising the ILC is calculated as a mean:

- Over 12 consecutive months for consumer prices (mIPC) and the turnover (mICAVaCD), which are monthly indices

- Over 4 quarters for the cost of construction, an index calculated on a quarterly basis (mICC).

In order to calculate these means, the last month (or quarter) considered corresponds to the last month of the quarter (or to the quarter) of calculation of the ILC. The ILC, like each of its constituent indices, is expressed in relation to the reference 100 in the first quarter of 2008.

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