Informations Rapides · 24 September 2021 · n° 248

In Q2 2021, the tertiary activities rent index rose by 1.86% over a year Tertiary activities rent index - second quarter 2021

Article 63 of the Act of 17 May 2011 on simplification and improvement of quality of rights (Act 2011-525) established Tertiary activities rent index (TARI). Decree No. 2011-28 of 29 December 2011 set out the firms concerned and the procedures for calculating and publishing the index. The TARI is published in the end of the third month following the quarter under review.

The tertiary activities rent index (TARI), compiled on a quarterly basis, consists of a weighted sum of indices representing the variations in consumer prices, the prices of new construction and the gross domestic product and in value terms.

The representative index of price level is the Consumer price index for consumption excluding tobacco and rents (IPCL) for all households and on the mainland and overseas departments published by INSEE. The calculation of the commercial rents index uses the average of the index over twelve consecutive months, the last corresponding month being the last month of the quarter for which the tertiary activities rent index is calculated. This average (mIPCL) is expressed by retaining the reference 100 to the average for the first quarter of 2010.

The index representing the price level of new construction is the “Cost of Construction Index” (CCI) published by INSEE. The calculation of the quarterly tertiary activities rent index uses the average of the index over four consecutive quarters, the last quarter being the one for which the tertiary activities rent index is calculated. This average (mICC) is expressed by retaining the reference 100 to the average for the first quarter of 2010.

The level of the gross domestic product is calculated from the quartely gross domestic product, in value terms at current prices, by value, adjusted for seasonal and working days effects are (MoyPib) published by INSEE. The calculation of the Tertiary activities rent index uses the average of the index over four consecutive quarters, the last quarter being the one for which the Tertiary activities rent index is calculated. This average (mPIB) is expressed by selecting, for each calculation, the reference 100 for the average for the first quarter of 2010.

The three components used in the calculation of the Tertiary activities rent index in the form of weighted as follows

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

The tertiary activities rent index is not revised.

Uses

In accordance with Act no. 2011-525 of 17 May 2011 on simplification and improvement in the quality of rights (article 63), 2014-626 Act of 18 June 2014 (article 9), which amends section L145-34 of the Commercial Code, two indices can be used for the escalation of commercial rent contracts leases:

- The Commercial rent index for trade and craft activities;

- The Tertiary activities rent index for activities other than trade and craft activities.

Next issue: mid-December 2021