Office space is one of the largest expenses a growing company incurs. It’s rare to have a fixed rent over a long-term lease. Sometimes, landlords insist on annual increases based on the percentage increases in the Consumer Price Index (CPI).
If your landlord insists on rent escalations:
- Try to arrange that a CPI rent increase does not kick in for at least two years.
- Then, try to get a cap on the amount of each year’s increase.