The Tertiary Activities Rent Index (ILAT) in France has experienced steady growth in the first quarter of 2023, reaching a value of 6.51. This marks a slight increase compared to the previous quarter, where the index stood at 6.46 in the fourth quarter of 2022. The ILAT serves as a key indicator of rent levels for non-commercial and non-artisinal activities.
The ILAT is calculated on a quarterly basis and combines weighted indices that represent consumer prices, new construction prices, and gross domestic product (GDP) in value. The index takes into account the average of the consumer price index (excluding tobacco and rent prices) over twelve consecutive months, with the last month corresponding to the final month of the quarter being evaluated. The ILAT uses a reference value of 100 for the average relative to the first quarter of 2010.
Additionally, the ILAT incorporates the average of the construction cost index (ICC) over four consecutive quarters, with the last quarter matching the quarter for which the ILAT is being calculated. This average is also referenced to 100 for the first quarter of 2010. Lastly, the index considers the average of the GDP value over four consecutive quarters, adjusted for seasonal variations and working days, with the last quarter aligning with the one under review. This average is then reported relative to the first quarter of 2010 to establish an index with a reference value of 100.
The ILAT is determined by the following formula, which assigns different weights to each component: 50% mIPCL (average consumer price index), 25% mICC (average construction cost index), and 25% mPib (average GDP value).
It is important to note that the ILAT is not subject to revision, providing stability and reliability for rent-related assessments in non-commercial and non-artisinal sectors.
Under the provisions of the law, specifically article 9 of Law No. 2014-626 dated June 18, 2014, which modifies Article L. 145-34 of the Commercial Code, two indices can be used for the revision of commercial leases. The Commercial Rent Index is applicable for commercial and artisanal activities, while the Tertiary Activities Rent Index is used for activities other than commercial and artisanal.
The next publication of the Tertiary Activities Rent Index is scheduled for the end of September 2023, offering further insights into rent trends for non-commercial sectors in France.
https://www.insee.fr/fr/statistiques/7636047#tableau-ilat-g1-fr