In commercial leases, rents do not necessarily have to be kept constant over the life of the lease term. One option is for there to be pre-specified increases in the contract rental rate over time, sometimes referred to as "step-ups" or "escalations." This type of rent treatment is commonly referred to as:

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The described rent treatment, where there are preset increases in the rental rate over the lease term, is known as "graduated rent." Flat rent refers to a fixed rental rate that does not change throughout the lease term. Indexed rent is tied to an external index, such as inflation or the consumer price index. Percentage rent is a type of lease where the rent is based on a percentage of the tenant's gross sales.

In Commercial Leases, Rents Do Not Necessarily Have to Be