Lease Escalations

Lease escalations are common clauses built into commercial leases that allow for automatic, periodic increases in a tenant’s rent. The reason for them is so that landlords are able to keep up with inflation and other rising expenses over the course of a multi-year lease, which is common in the commercial space.

There are several types of commercial lease escalations that owners can use, but the most common include fixed escalation rates, Consumer Price Index (CPI) escalation rates, and operating cost escalation rates. You can learn more about these types and how to maximize profitability through the escalation rates in our blog.

Understanding lease escalation rates, how they are used, and how to automate the collection of the increased rent is critical to any commercial owner’s success. In fact, STRATAFOLIO, on average, uncovers over $21,000 every year in missed lease escalations. 

Learn more about lease escalations in our helpful blogs:

• What Are Lease Rate Escalations?
• What Are NNN Leases and What Are Lease Escalations?
• 5 Critical Steps to Better Manage NNN Lease Escalations