Posted by Neil on May 05, 2008 at 10:48:11:
In Reply to: CPI escalator in comm lease posted by Dan Morris on May 03, 2008 at 05:20:12:
Use both, say something along the effects "Base rent shall be subject to an annual escalation based on the most recent adjustment to the Consumer Price Index (then state where you will get that figure from, we use the bls.gov statistics) or 3% (assuming that's around the avg for the last 10 years) whichever is greater.
That way you can use the last 10 year avg but if the CPI for the next ten years is much greater you're covered.