The many ways to effect escalations in leases.

Extract


The many ways to effect escalations in leases.

Escalations represent a landlord's opportunity to recover from tenants increases in operating expenses used for the property maintenance and operations of the property occupied by these tenants. In this fashion, the landlord will maintain a reasonably fixed profit margin on each tenant's respective lease transaction throughout the term of that specific lease. Although tenants frequently try to eliminate or minimize escalations, the concept is almost universally accepted. It is very rare to find a recent lease without some sort of escalation provision included within its terms.

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