Commercial lease tools

Which tool for your situation

The lease contains an annual indexation clause: the rent changes automatically on each anniversary date, in line with the index chosen by the parties. The calculator applies the change between the base index and the new index, then gives the new rent and the difference from the current rent.

Even without an indexation clause, the landlord or the tenant can ask for a rent review at least three years after the tenant took possession or after the start date of the renewed lease (article L. 145-38 of the Commercial Code). The increase is then capped at the change in the index over the period, unless a material change in local trading conditions has changed the rental value by more than 10%.

In both cases, the right index is not enough: you also need the right quarter. Check the reference quarter stated in the lease before using the ILC and ILAT pages, which list every quarterly value published since 2005.

ILC or ILAT: which index for which lease

The Monetary and Financial Code allows commercial rents to be indexed on the ILC for commercial or craft businesses, and on the ILAT for other activities, including the liberal professions such as lawyers, doctors and architects (article L. 112-2).

Both indices are calculated and published every quarter by INSEE. The ILC is based 75% on consumer prices excluding tobacco and rents and 25% on the construction cost index. The ILAT is based 50% on the same consumer prices, 25% on construction costs and 25% on nominal gross domestic product.

Beyond the calculation

A correct calculation does not protect against a procedural mistake. A request for a rent review must be served by a judicial officer or sent by registered letter with acknowledgment of receipt, and must state the rent requested or offered, failing which it is void (article R. 145-20 of the Commercial Code). The reviewed rent is due from the date of the request.

When the lease is renewed, different rules apply: the rent cap, exceptions to the cap and rent setting by the court. They are explained on our page on the renewal of a commercial lease.