Property Management

A Pennsylvania commercial property manager negotiating a lease renewal should be aware that rent escalation clauses typically provide for:

AFixed rent for the entire lease term
BScheduled rent increases based on a fixed percentage, CPI, or market rates✓ Correct
CRent reductions after the first year
DRent tied to the tenant's gross sales only

Explanation

Commercial lease escalation clauses provide for periodic rent increases. Common structures include: fixed percentage increases (e.

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