Property ManagementIntermediateNorth Carolina Exam

An 'index lease' in commercial real estate ties rent increases to:

AThe landlord's cost of improvements, under the applicable standard
BA published economic index such as the Consumer Price Index (CPI)Correct
CThe tenant's gross sales
DThe local property tax rate

Why A published economic index such as the Consumer Price Index (CPI) Is Correct

Answer B: A published economic index such as the Consumer Price Index (CPI)

An index lease (or cost-of-living lease) adjusts rent periodically based on a published economic index such as the CPI, protecting the landlord against inflation.

Exam Tip: Property Management

Property management questions cover landlord-tenant law, security deposits, and maintenance responsibilities. Know the differences between gross, net, and percentage leases.

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