The ILC (indice des loyers commerciaux) was introduced as partof President Nicolas Sarkozy's economic reforms followingcomplaints over the existing ICC construction cost index (indice ducot de la construction), which had risen sharply as a result ofsurging raw materials prices. The ILC now offers an alternativebasis for rental revisions in commercial leases.

|

The ILC is derived from three other indicators: French consumerprices, excluding tobacco and rents, have a 50% weighting, whileretail sales and the ICC index itself each have a 25% weighting.The ILC is intended to be less erratic than the ICC index, whichposted a year-over-year fall of 5.77% in 3Q09 compared with anincrease of 10.46% a year earlier.

AllanSaundersonis a managing editor of Property FinanceEurope and a contributor to GlobeSt.com.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.