Which lease provision allows the landlord to periodically raise rent by pre-agreed increments?

• A. Escalated Lease
• B. Index Lease
• C. Reappraisal Lease
• D. Sale & Leaseback

Answer: (A)

An escalated lease uses a pre-set schedule of rent increases, built into the lease, so the landlord can raise rent periodically by fixed amounts or percentages. This arrangement provides predictable increases over time, often to cover rising operating costs or inflation. An index lease ties rent to an external index like the CPI, which can move up or down rather than following a fixed step schedule. A reappraisal lease resets rent when the property is revalued to current market value, not according to predetermined increments. A sale-and-leaseback involves selling the property and leasing it back, which is about ownership structure rather than a rent escalation mechanism. So the described provision is an escalated lease.