CPI is the index used in real estate. You're probably thinking about financial institutions and LIBOR or similar. Why not agree on a specific percentage, such as 3%? If this is a NNN lease, the CPI makes sense. Otherwise, have the school pay increases in taxes and insurance and operating costs plus the CPI.
We don't know what the CPI will be in year 3, 4 or 5 -- it may be considerably higher.
Aug 10, 2017