Commercial rent index (CRI) - Base 100 on the 1st quarter of 2008

Time series
Date of last update : 2017-03-21

Identifier 001532540

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Year Quarter Value Publication in the OJ
2016 4 108.91 2017-03-22
2016 3 108.56 2016-12-21

last values

File format

In SDMX-ML format (user guide available here)

Characteristics

  • Correction : Non-adjusted (raw)
  • Reference period : 2008-T1
  • Periodicity : Quarterly
  • Geographical area : Metropolitan France

Introduction

Law No 2008-776 of 4th August 2008 (in French only), concerning the “modernisation of the economy”, introduced the quarterly Commercial Rent Index (CRI).

Decree No 2008-1139 of 4th November 2008 (in French only) specifies the process of calculating and publishing this indicator, as well as the activities covered.

It is published in the Journal officiel around March 14th (Q4 of year Y-1), June 14th (Q1 of year Y), September 14th (Q2 of year Y) and 14th December (Q3 of year Y) since 2014.

Method

The quarterly Commercial rent index (CRI) is a weighted aggregation of three key indicators covering the changes in consumer prices, new-build property prices and the turnover of the commercial retail sector.

The indicator used to represent consumer price trends is the Consumer Price Index Excluding Tobacco and Rent (IPCL), published monthly by INSEE. This indicator covers all households in mainland France and the overseas departments. To calculate the CRI, we take the mean of the Consumer Price Index Excluding Tobacco and Rent figures for the past twelve consecutive months (mIPCL). The last month counted will correspond to the last month of the quarter for which the CRI is being calculated. The benchmark for this annual average figure (mIPCL) is the relative mean for the first quarter of 2008, fixed at 100.

The indicator representing the development of new-build property prices is the Cost of Construction Index (ICC), which is published by INSEE quarterly. When calculating the CRI, we take the mean of the ICC over the last four consecutive quarters (mICC), the most recent quarter being the quarter for which we are calculating the CRI. The benchmark for this average figure (mICC) is the relative mean for the first quarter of 2008, fixed at 100.

The indicator taken to represent the growth in turnover in the commercial retail sector is the Commercial Retail Sales Value Index, corrected for seasonal variations and business days (ICAVaCD), published monthly by INSEE. To calculate the CRI, we take the mean of the ICAVaCD figures for the past 12 consecutive months (yielding the mICAVaCD). The last month counted will correspond to the last month of the quarter for which the CRI is being calculated. The benchmark for this average figure (mICAVaCD) is the relative mean for the first quarter of 2008, fixed at 100.

The quarterly Commercial rent index is calculated using the latest data available from these three sources, as of the date at which the quarterly CRI is being calculated. If one of these component indicators should be modified subsequently to the publication of a given quarterly index figure, these modifications will not be used to update the published index.

These three component data sources are weighted as follows when calculating the CRI:

Quarterly Commercial rent index = 50% mIPCL + 25% mICC + 25% mICAVaCD

What is the intended audience of this new indicator?

This information will be of interest to shopkeepers and tradespeople who rent premises from which they run a commercial business, and as such are listed on the Companies Register (RCS - for shops) or the Trade Directory (RM - for trade professionals).

The following activities are not covered by this new system:

  • Activities conducted in buildings intended exclusively for use as offices, even if the tenant has a commercial rent;
  • Activities based in dedicated logistics centres (warehouses etc.);
  • Industrial activities: manufacturing (factories, workshops), haulage companies performing such activities, even if they are bound by a commercial rent.

Review of commercial leases

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