step-up lease

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Graduated Lease

A long-term lease on a property where the rent is changed periodically to reflect the market value of the property. This is used in real estate. For example, suppose one signs a 99 year, graduated lease on an office building. The rent may increase (or, less likely, decrease) every 10 years as the value of the office building increases (or decreases) over time. Graduated leases are designed to protect the owner/lessor of the property.

step-up lease

See graduated rental lease.

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