Property Valuation
In South Carolina, what is an 'indexed lease' in commercial real estate?
AA lease where the property has been indexed in a database
BA lease with rent adjustments tied to an economic index (like the CPI) to account for inflation✓ Correct
CA lease listed on the commercial MLS
DA lease requiring the tenant to maintain a property index
Explanation
An indexed lease (CPI lease) adjusts rent periodically based on changes in an economic index, such as the Consumer Price Index (CPI). This protects the landlord from inflation eroding the real value of rent over long lease terms.
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