Commercial rent index (ILC)

Mandatory indices for commercial lease rents

ILC index (commercial or craft activities) or ILAT (tertiary sector)

Article L145-34 of the French Commercial Code requires the ILC or ILAT index to be used instead of the ICC index, except in the case of a sliding scale clause.

Replace the ICC with the ILC or ILAT index at the next renewal (after 9 years)

Current commercial leases may continue to apply the ICC index to the calculation of the rent review, including the triennial review of the commercial lease rent. At the end of the 9-year period, commercial leases must be renewed using the ILC or ILAT indexes.

The ILC applies to rents for premises used for commercial and craft activities.

Article L112-2 of the French Monetary and Financial Code states:

“Any clause providing for indexation to the change in the national construction cost index published by the Institut national des statistiques et des études économiques or, for commercial or craft activities defined by decree, to the change in the quarterly index of commercial rents published under conditions set by the same decree by the Institut national de la statistique et des études économiques, is deemed to be directly related to the purpose of an agreement relating to built-up property.

Any clause providing for indexation to variations in the quarterly index of rents for tertiary activities published by the Institut national de la statistique et des études économiques under conditions laid down by decree, for activities other than those referred to in the first paragraph and for activities carried out by the liberal professions, is also deemed to be directly related to the purpose of an agreement relating to a building.

The ILAT applies to tertiary activities other than commercial and craft activities: activities of the liberal professions and those carried out in logistics warehouses.

The ILC applies to commercial leases signed on or after November 7, 2008 (December 30, 2011 for the ILAT).

The ILC applies to current commercial leases, unless the parties have signed an amendment specifying the choice of another index, such as the ILAT.

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