What You Need to Know About Rent Escalation Clauses

Rent escalation clauses are standard in most commercial real estate leases. If your company leases space, your rents are probably set up to increase automatically over time. While escalations of 2%-3% per year might not necessarily seem like a big deal, they can actually have a large impact on your occupancy costs over the length of the lease. Lease escalations come in a few different forms. Some leases have a single payment that covers both a charge to the landlord for the use of space in his or her building and for the costs of managing that space. Others have…
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