A type of long-term lease whose payments are variable rather than fixed, and depend upon a benchmark rate, such as changes in the consumer price index.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved