Property Management

When managing an Oklahoma commercial property, a property manager negotiates a lease renewal. The lease includes a CPI escalation clause. This means rent will:

ADecrease every year based on inflation
BIncrease (or potentially decrease) based on changes in the Consumer Price Index, protecting the landlord's income from inflation✓ Correct
CRemain fixed for the entire lease term
DChange only if the tenant requests it

Explanation

A CPI escalation clause ties rent adjustments to the Consumer Price Index. If the CPI rises, rent increases proportionally, protecting the landlord's real income from inflation.

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