Our practical sheets

Our practical sheets

Which index to use for the rent of a commercial or professional lease?

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As with a residential lease, it is usual to provide that the rent of a commercial lease(Sheet 20-5: The Commercial Lease)or a professionallease(Sheet 20-2: The Professional Lease) is increased each year according to the variation of an index.

The cost of construction index can always be used in a commercial or professional lease.
The parties may choose another index. However, it is forbidden to use for indexation :

  • - the SMIC (Minimum Growth Wage),
  • - the general level of prices or wages,
  • - the prices of goods, products or services that do not have a direct relationship with the object of the lease or with the activity of one of the parties.

Recently, two new indices have been created:

  • - the ILC (Indice des Loyers Commerciaux), which can be used for commercial or craft activities, with the exception of logistics warehouses,
  • - the ILAT (Indice des Loyers des Activit├ęs du Tertiaire), for professional activities, logistics warehouses and activities that are neither commercial nor artisanal.

Note: the rent for a commercial lease may also be revised every three years, based on the ILC or ILAT, depending on the date the lease was signed.

Depending on the tenant's activity, it is thus possible to choose between the ICC, the ILC or the ILAT. These 3 indices are published by INSEE.

Note: temporarily, in view of inflation, rents revised according to the indices from the 2nd quarter of 2022 to the 1st quarter of 2023 will be capped at a variation of 3.5%. This limitation of rent variation only applies to leases concluded with companies with less than 250 employees and with an annual turnover of less than 50 million euros or with an annual balance sheet not exceeding 43 million euros.