Graduated Lease

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Dictionary Says

Definition of 'Graduated Lease'

A type of long-term, typically commercial property, lease in which the lease payments are variable and adjusted periodically to reflect changes in the property’s appraised value or changes in a certain publicized benchmark rate, such as the Consumer Price Index (CPI). A graduated lease provides for periodic changes in the lease payments rather than employing a fixed payment throughout the life of the lease. In addition to basing payments on current and changing market conditions, the terms of a graduate lease can state that the lease payments automatically increase by a specified percentage or dollar amount at regularly specified time intervals.
Investopedia Says

Investopedia explains 'Graduated Lease'

Graduated leases are intended to protect the interests of the owner/lessor of the property. In many cases, the value of the leased property increases, and the lease payments can be adjusted accordingly. For example, if a company has a 99 year lease on land under a graduated lease, the payments can be adjusted every ten years to reflect the current market value of the land. If market values increase, this helps protect the land owner against losses resulting from lease payments that would be too low for current market conditions. In a different scenario, a graduated lease may be used to entice a company to lease a property that in the beginning has relatively small lease payments. As time passes, the lease payments increase on a regular basis, such as with an annual rent increase of 5 percent. This scenario is helpful to entrepreneurs who need to save money in the first few years of a lease while the business is established.
Search results for

'Graduated Lease'

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    ... lease by adjusting the lease life, lease payments or other aspects of the lease. ...
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    ... reveal that the company is responsible for not only making lease payments but ... Mr.
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    ... The Big Move Once you've signed your lease and have a move-in date ... She graduated
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    ... higher loan and lease losses would decrease its loan and lease reserve account ... After
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    ... a hotel room can be thought of as a form of short-term lease that can be ... He graduated
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    ... $90 million for the year on the strength of a 98% lease utilization factor ... He graduated
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  • Getting To Know Business Models

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    ... own the outlet real estate, as McDonald's does, or does it lease the space ... Mr. McClure
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  • Spotting Profitability With ROCE

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    ... and preferred-share capital reserves, all debt and finance lease obligations, as ...
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  • CFA Level 1 Study Guide - Quantitative Methods - Time Value Of ...

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    ... Of Capital Vs. Operating Leases; 9.18 Determining The Value Of The Lease
    And The Lease Asset; 9.19 Sale And Leaseback; 9.20 Types Of ...

  • Money And Politics

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    ... convicted of accepting bribes from oil companies, in exchange for low lease rates
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