Bold tag in the Commercial Lease Agreement Template

Aug 6th, 2022
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Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.
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A step-up lease is a contract that establishes future price increases for the lessee at set times throughout the life of the contract. Step-up leases are meant to protect the landlord from the risks that inflation or a rising market present for a long-term lease.
Typically, the clause includes a notice period, the term length for the renewal period, the renewal rental rate, and the fair market value ing to the landlord. The renewal clause protects the tenants rights and negotiation leverage in unfavorable market conditions.
A use clause limits the tenants conduct by outlining exactly how theyre permitted to use the space that they want to lease. A use clause be either prescriptive, defining what the tenant must do, or they can be restrictive, defining what the tenant is prohibited from doing.
With a percentage rent lease, you first pay a minimum rent under a gross or net lease. Then, when your gross sales surpass a specified mark, you begin to pay a certain percent of every additional dollar in sales as additional rent.
This clause determines when your lease payments will go up and how much they will cost you. While escalations might seem far away when you first sign your lease, they will come into play eventually.
An escalator clause (also known as an escalation clause or a laddering clause) is a clause or provision in a lease or contract that allows pricing or wages to be adjusted to account for changing market conditions, such as inflation or tax fluctuations.
Renewal clauses usually state that the tenant must give you advance written notice if theyre planning to renew the lease or move out at a particular time. Tenants should specify their renewal intentions with 30-to-60 days notice.
The Escalation Rate is the additional rent to be put on top of the current agreed rent on a yearly basis. Landlords in the Philippines usually require an escalation rate to beat inflation. It usually starts at 10% per annum but is negotiable highly depending on market conditions and the building lease performance.

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