What are the pros and cons of using CPI vs. other rent escalation methods?
Rent escalation is a common feature of commercial leases, as it allows landlords to adjust the rent periodically to account for inflation, market changes, or other factors. However, not all rent escalation methods are created equal, and some may have more advantages or disadvantages than others for both landlords and tenants. One of the most widely used rent escalation methods is the consumer price index (CPI), which measures the changes in the cost of living over time. In this article, we will explore what CPI is, how it works, and what are the pros and cons of using CPI vs. other rent escalation methods.
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Nicholas MolinaroCommercial Real Estate | Off-Market Properties | Commercial Lending |
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Clarence Wong, CCIMCommercial Real Estate Consultant | ARGUS Instructor at UCLA Extension
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Christian ArceReal Estate Investor - VP Commercial lending at National Private Lending - Senior Partner at NCC - We Raise Capital for…