France revises index calculation for retail leases

Publication

18 March 2022 à 16h56

Updated on 25 March 2022 à 15h23

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1 minute

Publication: 18 March 2022 à 16h56, Updated on 25 March 2022 à 15h23

Reading time: 1 minute

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Publication

18 March 2022 à 16h56

Updated on 25 March 2022 à 15h23

Reading time

1 minute

Publication: 18 March 2022 à 16h56, Updated on 25 March 2022 à 15h23

Reading time: 1 minute

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On March 15th, 2022, France rules changed to include calculation of the Commercial Rent Index (Indice des Loyers Commerciaux or ILC), which is the basis of a retail leases valuation. This was just in time as landlords are suffering from unpaid rents after a two-year pandemic.

The inflationary trend pushed up retail rents and the calculation model was no longer consistent with the sector’s digitalisation. Since 2008, this ILC had taken into account the construction cost index, the con

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