Unfortunately when abstracting leases, we often come across a Base Rent Provision that is worded something like the following:

Lease (2) – Base Rent for the first Lease Year shall be $50,000 per month.  Beginning with Lease Year 2, Base Rent shall increase (but not decrease) by CPI, not to exceed a maximum of 5%.

The question becomes, “What does that mean?”  We know that Base Rent will increase by CPI, but how often?  Do we increase it yearly by CPI, and even if we do, what CPI Table should be used for the adjustment?  Another question is what months should be compared in order to determine if there was an increase? 

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