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How Rent Escalations Work in Commercial Leases — and Why Small Annual Increases Become Big Long-Term Costs

How Rent Escalations Work in Commercial Leases — and Why Small Annual Increases Become Big Long-Term Costs

How Rent Escalations Work in Commercial Leases — and Why Small Annual Increases Become Big Long-Term CostsRobby S. Pinnamaneni, Esq.
Published on: 10/04/2026

A 3% annual rent escalation on a 10-year lease adds over $100,000 to your total cost. Learn how the three escalation structures work, which is riskiest, and what to negotiate.

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