Property Management
An escalation clause in a commercial lease allows:
AThe tenant to terminate the lease early
BThe rent to increase periodically based on an index or fixed percentage✓ Correct
CThe landlord to sell the building during the lease term
DThe tenant to expand into adjacent space
Explanation
An escalation clause in a lease provides for periodic rent increases, typically tied to an index (such as the Consumer Price Index) or a fixed percentage. This protects the landlord from inflation.
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