Property Management
A Rhode Island commercial lease contains a 'rent escalation clause' tied to the Consumer Price Index (CPI). This means:
AThe rent decreases when inflation falls
BThe rent increases periodically based on changes in the CPI, protecting the landlord from inflation✓ Correct
CThe tenant may reduce rent if the CPI declines
DThe rent is fixed regardless of inflation
Explanation
A CPI-tied rent escalation clause adjusts rent periodically (typically annually) based on changes in the Consumer Price Index, allowing the landlord to maintain the real value of rent income against inflation.
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