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The Economic Modernization Act No. 2008-776 of August 4, 2008, established a quarterly Commercial Rent Index (CRI). Decree No. 2022-357 of March 14, 2022, amending Decree No. 2008-1139 of November 4, 2008, established the formula for calculating and publishing the index. The CRI is published at the end of the third month following the quarter under review.
As of the third quarter of 2021, the quarterly Commercial Rent Index (CRI) consists of the weighted sum of indices representing changes in consumer prices, new construction prices, and retail trade turnover.
The Consumer Price Change Index is a monthly consumer price index (excluding tobacco and rent) published by INSEE, calculated for all households living in the mainland and abroad. The calculation of the quarterly commercial rent index is based on the average of the index over the past twelve months.
The indicator measuring changes in new construction prices is the quarterly “Construction Cost Index” (CCI) published by INSEE. The calculation of the quarterly commercial rent index is based on the average of the index over four consecutive quarters.
The Index of Change in Retail Trade Turnover is a monthly retail trade turnover index published by INSEE, adjusted for seasons and working days (RTI). The calculation of the quarterly Commercial Rent Index is based on the average of this index for the last twelve consecutive months. In 2016, INSEE improved the calculation methodology of the Retail Trade Turnover Index, using detailed information from VAT data instead of a sample of establishments. In order to continue calculating the CRI without interruption due to the change in methodology, a chain coefficient was applied in the new series of monthly retail trade turnover indices, in accordance with the application decree. The connecting point is December 2015 and the coefficient value is 0.945 (December 2015 value of the old series on June 2, 2016 / December 2015 value of the new series).
The three components used in the calculation of the quarterly commercial rent index are weighted according to the following formula:
Quarterly Commercial Rent Index = 50% mCPI + 25% mCCI + 25% mRTI
From the fourth quarter of 2021, the Retail Trade Turnover Index (RTI) is no longer used in the formula and the Commercial Rent Index is based solely on the Consumer Price Index (mCPI) and the Consumer Confidence Index (mCCI), with weights of 0.75 and 0.25, respectively.
The quarterly commercial rent index was not revised.
use
According to Act No. 2014-626 of June 18, 2014 (article 9), which amends section L.145-34 of the Commercial Code, two indices may be used to increase or modify rents for service and trade activities:
– Commercial rent index for trade and craft activities;
– Rent index for the tertiary sector, excluding trade and craft activities.
Next issue: end of September 2024.
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