The ILC (indice des loyers commerciaux) was introduced as part of President Nicolas Sarkozy's economic reforms following complaints over the existing ICC construction cost index (indice du cot de la construction), which had risen sharply as a result of surging raw materials prices. The ILC now offers an alternative basis for rental revisions in commercial leases.
The ILC is derived from three other indicators: French consumer prices, excluding tobacco and rents, have a 50% weighting, while retail sales and the ICC index itself each have a 25% weighting. The ILC is intended to be less erratic than the ICC index, which posted a year-over-year fall of 5.77% in 3Q09 compared with an increase of 10.46% a year earlier.
Allan Saundersonis a managing editor of Property Finance Europe and a contributor to GlobeSt.com.Continue Reading for Free
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