Property Management
In Michigan, a 'rent escalation clause' in a commercial lease allows the landlord to:
AIncrease rent at any time without notice
BPeriodically increase rent according to a pre-agreed formula (e.g., tied to CPI or a fixed percentage) throughout the lease term✓ Correct
CImmediately double the rent if the property value increases
DCharge extra fees for building repairs
Explanation
Rent escalation clauses in Michigan commercial leases provide for periodic rent increases tied to an index (Consumer Price Index), a fixed annual percentage, or step increases at specified intervals, protecting landlords from inflation during long-term leases.
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