How Tenants Can Curb Effects of Inflation in Commercial Leases


How Tenants Can Curb Effects of Inflation in Commercial Leases


Inflation hit 9.1 percent in June, the fastest pace of price escalation in more than 40 years as measured by the Consumer Price Index (CPI), and it hasn’t retreated much since then. And while businesses are factoring soaring prices into many decisions, they should make sure to keep a close eye on their leases.

Most leases contain additional rent provisions designed to protect landlords from inflationary increases in operating costs over time. Accordingly, increases in operating costs will generally be passed on to tenants over the course of their lease terms.
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RSK: A good analysis on capping rate increases for controllable expenses....for both landlord and tenant.

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- - Volume: 10 - WEEK: 44 Date: 10/25/2022 10:24:46 AM -