Indexing a commercial rent: ILC or ILAT?
Most commercial leases include an indexation clause that revises the rent each year based on the change in an INSEE index: the ILC for retail and crafts, the ILAT for offices and tertiary activities. This simulator computes the new rent from your reference and revision indices, with the optional 3.5% SME cap. No sign-up, no data kept.
ILC or ILAT: how to revise a commercial rent
A commercial lease almost always contains an escalation clause (indexation clause) that automatically revises the rent each year on the anniversary date. The revision applies the change of a quarterly index published by INSEE. Two indices coexist: the ILC (Commercial Rent Index), for retail and craft activities, and the ILAT (Tertiary Activities Rent Index), for offices, professional practices, warehouses and tertiary activities.
The calculation is simple: new rent = current rent × (revision index ÷ reference index). The reference index is the one set in the lease — often the index of the quarter of signature — or the one used at the last revision. The revision index is the latest index published at the annual review date. The comparison is made between two indices of the same quarter one year apart (annual change).
To protect tenants from inflation, Act no. 2022-1158 introduced a 'commercial rent shield': the annual increase of the ILC applicable to SMEs was capped at 3.5% for revisions occurring between Q2 2022 and Q1 2024. This cap is optional in the simulator and only applies to increases, never to turn a decrease into a rise.
Without an indexation clause, the rent can only be revised through the statutory three-yearly revision, itself capped at the change of the index since the last setting. The applicable index, its period and the revision terms are set in your lease; the official ILC and ILAT values are published each quarter by INSEE. This simulator gives an indicative estimate.
Frequently asked questions
What is the difference between ILC and ILAT?
The ILC (Commercial Rent Index) applies to retail and craft activities: shops, restaurants, stores. The ILAT (Tertiary Activities Rent Index) applies to offices, professional practices, logistics warehouses and tertiary activities. The revision calculation is identical; only the index used, set in the lease, differs.
How is the revised rent calculated?
New rent = current rent × (revision index ÷ reference index). The reference index is the lease's (often the quarter of signature) or the last revision's; the revision index is the latest INSEE index published at the annual review date. The change is an annual movement between two indices of the same quarter.
What is the 3.5% cap?
The 'commercial rent shield' (Act no. 2022-1158) capped the ILC increase applicable to SMEs at 3.5% per year, for revisions occurring between Q2 2022 and Q1 2024. It is a temporary protection against inflation. You can enable it in the simulator if your situation qualifies.
Can you revise without an indexation clause?
Without an escalation clause, the rent can only be revised through the statutory three-yearly revision, every three years, itself capped at the change of the index (ILC or ILAT) since the rent was last set. The indexation clause, which is more common, allows an automatic annual revision.
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