What Is Cpi In Lease Agreements

In the case of an index lease, this usually corresponds to the amount charged for the rent at the beginning of the lease. However, for other types of leases, it is possible that in addition to operating costs or, in the case of retail trade, a percentage of sales, a basic rent will be paid. A commercial escalation clause is often included in most commercial real estate leases. This clause allows the landlord to increase the rate of your rent according to a certain schedule or because of certain triggers contained in the clause. By including commercial escalation clauses, your rent will not be set over time. Therefore, it is important to pay attention to the following commercial escalation clauses so that they do not have a major impact on your occupancy costs during the period that your lease includes. If you`re renting out any type of property, whether you`re the landlord or the tenant, make sure your lease is clear about what rent is and what inflation adjustments apply to rent…