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Real Estate Glossary

CPI Rent Escalation

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Written by Luis Escobar

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.

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.

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Luis Escobar

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