Rental value.
Market rental value and Article L.145-33 rental value: two distinct bases.
Two rental values, not one.
Market rental value is the rent a property would achieve today, freely negotiated. Rental value under the French Commercial Code (Articles L.145-33 et seq.) follows other rules: characteristics of the premises, permitted use, obligations of the parties, local trading factors; and it is this value that governs the renewal of commercial rents, uncapping and rent review.
Confusing the two distorts the whole discussion. Our reports establish both, by reasoned comparison and by effort rate, with documented comparables, in out-of-court negotiation, before the commercial rents judge, or in support of written submissions.
The full definition, in the glossaryRenewal & uncapping
Renewal rent, significant change in local trading factors, release from the cap.
Review & court-set rent
Three-yearly review, referral to the rents judge: reports that meet procedural requirements, produced by valuers registered with the Courts of Appeal.
Residential rents & portfolios
Market rental values for disposal decisions, financing or the management of a rental portfolio, asset by asset or as a portfolio.
Paris, Lyon, Savoie, the whole South-East.
From our five offices · Paris, Lyon, Chambéry, Annecy, Aix-en-Provence: we cover the Paris and Lyon rental markets, Savoie and Haute-Savoie (towns and resorts), and the whole south-eastern arc as far as the Côte d'Azur and Monaco. Rental value is a local matter: our valuers work with the comparables of the ground they know.
What we are really asked.
Yes, and it turns on the rental value under Articles L.145-33 et seq. of the French Commercial Code, not on the market rent. Landlord and tenant alike can have it established by a valuer and, failing agreement, refer the matter to the commercial rents judge. The valuation report is the central document in this discussion.
On renewal, the rent is in principle capped by the change in an index. It can be "uncapped", set directly at the rental value, in certain cases: a significant change in local trading factors, in the characteristics of the premises or in their permitted use, or a lease of more than twelve years. The quantification of that rental value is then decisive, in either direction.
Mainly by comparison with the rents charged nearby for equivalent premises, weighted according to usable floor area (the weighted area method), and checked against the effort rate, the ratio between rent and the turnover the business can bear. The quality of local comparables is what makes the result reliable.
A rent to set, review or challenge?
Describe your property and your situation, in complete confidence. The valuer who replies is the one who will sign the report.
Request a valuation