Property Management

A Mississippi commercial property manager signs a lease with a national retailer. The lease has a 5-year term with annual rent increases of 3%. This type of lease is a:

APercentage lease
BStep-up lease (graduated rent lease)✓ Correct
CNet lease
DGross lease

Explanation

A step-up lease (also called a graduated rent or escalation lease) has scheduled rent increases at specified intervals. The 3% annual increase is a predetermined step-up in rent.

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