QuickFacts: Is Using the CPI Increase in Commercial Leases Archaic?

By: Cliff Hockley, President Bluestone and Hockley Real Estate Services, Executive Director, SVN |Bluestone and Hockley


CPI lease clauses have long been a practice of Landlords, and were originally added in the 1980s to keep up with inflation when interest rates skyrocketed to 18.5% . These clauses remained relevant as interest rates were high – but interest rates have plummeted since the 2008 recession, following the Federal Reserve adjustment to jump start the weakened economy.

Read the rest of the latest QuickFacts here.