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What index to use for the rent of a commercial lease or a professional lease?
Rent index
As for a residential lease, it is usual to provide that the rent of a commercial lease (Sheet 20-5: The commercial lease) or professional lease (Sheet 20-2: the professional lease) is increased each year according to the variation of an index.
The construction cost index can still be used in a commercial or professional lease.
The parties can choose another clue. Be careful, it is forbidden to use for indexing:
• the SMIC (Minimum Interprofessional Growth Wage),
• the general level of prices or wages,
• the prices of goods, products or services that are not directly related to the object of the lease or to the activity of one of the parties.
Recently, two new indices have been created:
• the ILC (Commercial Rent Index), which can be used for commercial or craft activities, with the exception of logistics warehouses,
• the ILAT (Index of Rents of Tertiary Activities), for the activities of the liberal professions, logistics warehouses and activities that are neither commercial nor artisanal.
Depending on the activity of the tenant, it is thus possible to choose between the ICC, the ILC or the ILAT. These 3 indices are published by INSEE.
Namely : the rent of a commercial lease can also be subject to a three-year review, depending on the ILC or ILAT depending on the date of conclusion of the lease.
The construction cost index can still be used in a commercial or professional lease.
The parties can choose another clue. Be careful, it is forbidden to use for indexing:
• the SMIC (Minimum Interprofessional Growth Wage),
• the general level of prices or wages,
• the prices of goods, products or services that are not directly related to the object of the lease or to the activity of one of the parties.
Recently, two new indices have been created:
• the ILC (Commercial Rent Index), which can be used for commercial or craft activities, with the exception of logistics warehouses,
• the ILAT (Index of Rents of Tertiary Activities), for the activities of the liberal professions, logistics warehouses and activities that are neither commercial nor artisanal.
Depending on the activity of the tenant, it is thus possible to choose between the ICC, the ILC or the ILAT. These 3 indices are published by INSEE.
Namely : the rent of a commercial lease can also be subject to a three-year review, depending on the ILC or ILAT depending on the date of conclusion of the lease.
Good to know
The contracting parties may also provide for a sliding scale clause, also known as an indexation clause, under which the amount of the rent will be automatically revised, and ipso jure, on a periodic basis agreed between the parties.
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