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.Continue Reading for Free
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