French ILC Commercial Rent Index Turns Negative

PARIS-France’s ILC commercial rents index showed a year-over-year decline of 1.22% in the third quarter of 2009 following a slowdown in is rise over the previous three quarters. The index was up 0.84% in 2Q09, 2.73% in 1Q09 and 4.16% when it was launched in 4Q08.

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.