This refers to a contractual rent increase determined by the changes in the consumer price index (CPI). At the beginning of a lease year, the rent that is payable by the tenant will be increased in an account equal to the product of the rent times a number equal to the percentage increase in the CPI over a 12-month period. This is calculated by using the most recent CPI and the CPI 12 months earlier.
CPI Rent Escalation
This refers to a contractual rent increase determined by the changes in the consumer price index (CPI). At the beginning of a lease year, the rent that is payable by the tenant will be increased in an account equal to the product of the rent times a number equal to the percentage increase in the CPI over a 12-month period. This is calculated by using the most recent CPI and the CPI 12 months earlier.
