Dictionary of Business Terms: index lease
index lease
rental agreement that requires changes in rent based on a published record of cost changes.
Dictionary of Real Estate Terms: index lease
index lease
a rental agreement that requires changes in rent based on a published record of cost changes.
Example: A landlord makes an index lease with initial rent at $10,000 per year, adjusted annually by the consumer price index (CPI). If the CPI is 100 at the time of the lease and increases to 110 in the second year, the rent for the second year will be 10,000 × 1.10 = $11,000.
