What is a lease escalator clause?

lease escalator clauseIt’s a type of lease clause.

Commercial leases almost always have an escalator clause.

The clause builds in an agreed upon future increase in the lease payment amount.

It’s usually tied to a time period (e.g., an annual increase or an increase after 5 years.)

But it can also be tied to other triggering events, so read your lease carefully & make sure you understand when & under what circumstances your lease payment can increase.

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