In real estate leasing, a Graduated Lease is a lease agreement in which the rent changes over time according to a predetermined schedule. The increases may be based on the passage of time, periodic appraisals, or other agreed upon factors stated in the lease.
Graduated leases are commonly used for long term commercial or residential rentals to account for inflation or anticipated increases in property value. This type of lease provides predictability for both landlord and tenant by outlining future rent adjustments in advance.
