I need advise for an escalating rent clause for long term lease? Examples would be helpful. Thank You!

Stand Alone Office Building.. Tenant would be signing a long term lease.. In the location they are leasing now, they have been leasing for 20 plus years... My thoughts now are that I would basicaly start with a 3 year lease and provide an escalating rent clause for longer term.
In Leasing Property - Asked by Elsa C. - Jan 24, 2012
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Answer(s)

Kimberly A.
Broker/Agent
Rancho Cucamonga, CA

We set all of out leases to a standard CPI increase or a flat percentage, based on what the tenant would like to do. I don't have the exact wording, but we just write it into the addendum.

Jan 24, 2012
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Rob M.
Lender/Mortgage Broker
Houston, TX

20 years in one location and you want to start with a 3 year lease in a new one? Why 3?

Jan 24, 2012
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William R.
Broker/Agent
Spanish Fort, AL

If you do a 5 year lease w/ escalations at each five year renewal that will work
Example: 5 years starting 1 Jan 2012 and ending 31 Dec 2014 @ $100 monthly. Tenant has the option to renew for an additional 5 years @ 110 month beginning etc.

You fill in tour own dates & rental increases as applies.

Jan 26, 2012
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William R.
Broker/Agent
Spanish Fort, AL

That last answer should have read 1 Jan 2012 & end 31 Dec 2016
Sorry, I think that you get the point though

Jan 26, 2012
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Nadina C.
Broker/Agent
Phoenix, AZ

Minimum 5 year lease w/ % yearly bumps (CPI or flat percentage), plus 5 year renewal bumps. Makes staying long term more predictible against a rising rental market for the tenant; reduces turnover for you.

Jan 31, 2012
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