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welcome back Im Chris Albanese director of education for real estate Academy for Orlando back with another math question here the question were looking at next is going to be a variable index lease index lease typically is do be found in a commercial property what an index lease is designed to do is to allow the both the tenant and the landlord to plan out what the rent is going to be over the term of the lease most commercial leases are longer term assures 3 years they can go as long as 20 50 or even 100 year lease now because we have these long stretches or time in these leases its only fair for both the tenant and the landlord to have set increases or decreases in the rent over time now one of the ways we can do this is with an index lease a lot of times with an index lease will tie the lease itself to a verifiable index number like the Consumer Price Index so if we tied to the the CPI if the Consumer Price Index goes off by 25% and the lease renews every year or the renter read
