Commercial Rent Index: A 5.22% Increase in Q4 2023

Latest INSEE Index Figures Released

Significant Annual Increase Reported

The latest INSEE Commercial Rent Index (ILC), released in April 2024, shows a significant increase of 5.22% in the fourth quarter of 2023 compared to the same period in 2022. This marks a notable shift in the commercial real estate market, indicating a rise in rental prices.

The ILC is a key indicator used to measure the evolution of commercial rent prices in France. It is calculated based on a sample of rental agreements for various commercial properties, including retail stores, offices, and warehouses. The index is published quarterly by INSEE, the French National Institute of Statistics and Economic Studies.

This recent increase in the ILC aligns with observations of rising demand for commercial space in France, particularly in key cities and regions. Economic growth, low interest rates, and the recovery from the pandemic have contributed to this increased demand.

Tenants should be aware of these rising rent prices and may need to adjust their budgets or seek alternative leasing options to accommodate these higher costs. Landlords, on the other hand, may benefit from the increased rental income and potential capital appreciation of their commercial properties.