Property Ownership
What is an 'index lease' in commercial real estate and how is it used in Illinois?
AA lease with rent tied to an index like the Consumer Price Index (CPI), automatically adjusting rent over time✓ Correct
BA lease registered with an index of commercial leases in Illinois
CA base lease agreement using standardized 'index' terms from the Illinois Association of Realtors
DA lease identifying the tenant's industry classification code (SIC index)
Explanation
An index lease links rent escalations to an economic index, most commonly the Consumer Price Index (CPI). The lease specifies that rent adjusts annually by the CPI percentage change (or a portion of it).
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