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Subject:
Rent Increases in Commercial Leases
Category: Business and Money > Small Businesses Asked by: andrewgibbons-ga List Price: $40.00 |
Posted:
20 Apr 2006 14:29 PDT
Expires: 28 Apr 2006 04:54 PDT Question ID: 721081 |
Is there a standard rental escalation percentage that includes all of the potential increases a landlord might face to be passed on to sublesees? We are starting a new business in Manhattan, and our own lease tells us that aside from the rental increase of 3% per year, we are subject to the following: insurance escalations, Fuel, electric, gas escalations, tax escalations, etc. Having not lived in the space yet, we are unsure how much any of these increases can be. We would like to hold our sub-lessees to these same increases, but would rather make it a nice round figure that they can agree to, rather than each year have to recalculate our their rent increase with more paperwork and calculations. Is there some standard percentage that takes all of these escalations into account? How should we proceed? |
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There is no answer at this time. |
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Subject:
Re: Rent Increases in Commercial Leases
From: frde-ga on 21 Apr 2006 02:44 PDT |
Some years ago, in the UK, I advised someone to pin lease rental to the RPI (Retail Price Index) + a percentage. It has worked pretty well for quite some time. I don't follow the electricity increases, surely you will be using your own meter, 'gas' as in 'petrol' for cars - that is strange. I would have anticipated you signing a lease that consisted of two parts :- Basic Lease Service Charge Perhaps a little more detail ? |
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