Property Management

An Indiana commercial lease with a rent escalation clause based on CPI means rent will increase based on:

AThe property's assessed value
BChanges in the Consumer Price Index — a measure of inflation✓ Correct
CThe tenant's gross sales
DThe landlord's operating expenses

Explanation

A CPI-based rent escalation clause adjusts rent annually by the percentage change in the Consumer Price Index, protecting the landlord's purchasing power against inflation while providing rent predictability for the tenant.

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