Question: You are representing a tenant client in negotiating a lease on an office space. When you meet with the landlord's salesperson, they state that the

You are representing a tenant client in negotiating a lease on an office space. When you meet with the landlord's salesperson, they state that the landlord wants an escalation clause in the triple-net lease. After the meeting, you contact the tenant to inform them about the landlord's requirement for an escalation clause in the agreement to lease. Since they have never leased office space before, the tenant does not understand the purpose of the escalation clause and asks you to explain it to them.

Question:

What is the purpose of an escalation clause?

Answer Options:

A. To escalate the rent increase issue to the top executives of both parties for mediation

B. To escalate a problem to the top executives of the landlord and the tenant when issues arise

C. To increase the base rent during the lease term at a predetermined rate or amount

D. To increase the additional rent during the lease term at a predetermined rate or amount

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