Property Management

An 'index lease' in commercial real estate ties rent increases to:

AA. The tenant's annual sales performance
BB. A published economic index such as the Consumer Price Index (CPI)✓ Correct
CC. The landlord's operating expenses
DD. The local median income

Explanation

An index lease (or escalation clause tied to an index) automatically adjusts rent based on a published index like the CPI, protecting landlords from inflation while providing tenants with predictable increases based on economic conditions.

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