Glossary of Terms

Rent Bumps 2015-10-05 08:00:00

Rent Bumps

In the context of commercial real estate, rent bumps refer to periodic adjustments on the rental rates pursuant to a lease, typically stated as a fixed percentage of the rents currently in place.

As an example calculation, a lease may initially be for $10.00/sf with 2.0% annual rent bumps. In this case, rent in year two would be $10.20/sf and year three rent would be $10.40.

 


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