In this article, you'll learn:

• What a lease escalation clause is and when rent increases occur.
• The different types of escalation methods like fixed, percentage, and inflation-based increases.
• How operating expenses, CAMs, and reconciliations can impact your rent.
• The role of escalation clauses in lease renewal options.

Unless you were lucky enough to negotiate a lease that remains fixed for its entire life, you will have to deal with the provisions of its escalation clause. This clause determines when your lease payments will go up and how much they will cost you. While escalations might seem far away when you first sign your lease, they will come into play eventually.