The temporary cap on commercial rent indexation limited increases for SMEs during the inflation peak. You still need to know whether the scheme covered your lease and whether it was applied correctly.
How the cap works
Faced with the rise in the ILC (the French commercial rent index), the annual revision of certain commercial rents was capped at 3.5% for SMEs during the period set by law. The Direction générale des entreprises (the French government’s enterprise directorate) indicated that hundreds of thousands of shops were concerned. The cap is not a deferral of debt: where the conditions are met, the increase that was set aside cannot be recovered later.
How to check your rent schedule
- Find the indexation clause and the index used.
- Compare the increase applied with the cap in force at that date.
- Keep the revision notices and ask your adviser or accountant to check if there is a discrepancy.
FAQ
Did the cap apply to all businesses?
No. Its scope depended in particular on the size of the business, the lease and the period concerned.
Can the landlord recover the capped increase later?
The temporary mechanism was not intended to create a deferred catch-up. Check your exact situation with a qualified professional, however.
Sources
INSEE, ILC; Direction générale des entreprises; Court of Cassation case law on the cap.
