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An index lease ties the rent amount to an index of some kind. In general, that index is the Consumer Price Index, but it may also be tied to local rental market conditions. For example, a renter in a large urban center may negotiate a yearly rent review based on the average office rent in the city.

Variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate), initially measured using the index or rate at the commencement date.

A graduated lease is used primarily in real estate. For example, if under a graduated lease agreement, the company was leasing land for 20 years, every five years, the lease payments may be adjusted. This is to reflect the existing or current market value of the land.

Performance-based leases introduce provisions intended to promote deep energy retrofits and other energy efficiency measures by balancing costs and benefits between landlords and tenants.

index lease. a rental agreement that requires changes in rent based on a published record of cost changes. Example: A landlord makes an index lease with initial rent at $10,000 per year, adjusted annually by the consumer price index (CPI).

The Consumer Price Index (CPI) is frequently the index selected. In percentage leases some or all of the rent charged is based on a specified percentage of the volume of business, productivity, or use achieved by the tenant.

The Consumer Price Index (CPI) is frequently the index selected. In percentage leases some or all of the rent charged is based on a specified percentage of the volume of business, productivity, or use achieved by the tenant.

For example, let's say a tenant signs an index lease for a commercial property with a base rent of $1,000 per month. The lease agreement states that the rent will increase by 2% for every 1% increase in the consumer price index.

An index lease ties the rent amount to an index of some kind. In general, that index is the Consumer Price Index, but it may also be tied to local rental market conditions. For example, a renter in a large urban center may negotiate a yearly rent review based on the average office rent in the city.

Variable lease payments that depend on an index or a rate (such as the Consumer Price Index or a market interest rate), initially measured using the index or rate at the commencement date.

A graduated lease is used primarily in real estate. For example, if under a graduated lease agreement, the company was leasing land for 20 years, every five years, the lease payments may be adjusted. This is to reflect the existing or current market value of the land.

Performance-based leases introduce provisions intended to promote deep energy retrofits and other energy efficiency measures by balancing costs and benefits between landlords and tenants.

index lease. a rental agreement that requires changes in rent based on a published record of cost changes. Example: A landlord makes an index lease with initial rent at $10,000 per year, adjusted annually by the consumer price index (CPI).

The Consumer Price Index (CPI) is frequently the index selected. In percentage leases some or all of the rent charged is based on a specified percentage of the volume of business, productivity, or use achieved by the tenant.

The Consumer Price Index (CPI) is frequently the index selected. In percentage leases some or all of the rent charged is based on a specified percentage of the volume of business, productivity, or use achieved by the tenant.

For example, let's say a tenant signs an index lease for a commercial property with a base rent of $1,000 per month. The lease agreement states that the rent will increase by 2% for every 1% increase in the consumer price index.