What is rent escalation?
A lease provision that increases rent over the term through fixed dollar or percentage steps, CPI/inflation adjustments, or percentage rent. Escalations affect future income and the landlord’s ability to mark rent to market.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.