Property Management

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

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

Explanation

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.

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