Step-up provision in commercial property lease means

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Reference no: EM131361417

1. A "Step-up" provision in a commercial property lease means:

Provides for the tenant to move to a higher floor.

Adjusts the rental payments to changes in inflation.

Specifies in advance the absolute dollar amounts by which the rental payments will increase, no matter what happens to inflation.

Requires the tenant to pay specified increases in the building's operating expenses.

2. Suppose a lease has a 50% CPI-Adjustment each year. If last year's rent was $20/SF and the CPI has increased from 155 to 161, what is the new rent this year?

$20.49

$20.58

$20.39

$21.23

Reference no: EM131361417

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