Contracts
A Louisiana commercial lease with an 'escalation clause' means the rent will:
ADecrease each year based on market conditions
BIncrease at specified intervals based on a formula (CPI index, fixed percentage, or fair market rent)✓ Correct
CBe renegotiated annually by mutual agreement
DRemain fixed only for the first 5 years
Explanation
An escalation (rent increase) clause in a commercial lease provides for periodic rent increases based on a specified formula — commonly tied to the Consumer Price Index (CPI), a fixed percentage, or fair market rent reviews.
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