How can rent be increased during the term of a commercial lease? RENT

In a commercial lease, the parties can plan from the signing of the lease how the rent will evolve during its duration.

The lease may include, in particular:

• fixed increases on certain dates;
• an annual increase according to a predetermined percentage;
• an increase calculated according to a formula stipulated in the lease;
• an indexation based on a specific index;
• different rent amounts for each year or period of the lease.

When the rent is indexed , the lease should specify the index used, the date on which the adjustment is calculated, the reference period and the applicable calculation method.

The lease may also stipulate a minimum or maximum increase , or specify that the rent cannot decrease even if the index used falls.

It is important to distinguish between an increase in base rent and a change in additional charges. Taxes, operating expenses, and other charges can increase or decrease based on the building's actual expenses, independently of the planned increase in base rent.

The mechanisms for rent increases should therefore be clearly defined in the lease so that the landlord and the tenant can determine the applicable rent during each of the lease periods and better predict the evolution of the cost of renting.