What are the CPI escalator provisions in the Maple Commons 2025 lease? What's the cap, and is there a basis year exception?
Northstar AIToday at 7:42 AM
Found 3 relevant documents. Here's what I can tell you from the Maple Commons lease and the REBNY form used as the base:
CPI Escalator — Section 4.3(a): Commencing Year 3, annual base rent increases by the greater of (i) CPI for the prior lease year, or (ii) 2% fixed floor. No single-year increase may exceed 5%.
Basis Year Exception: The escalator is calculated against the base year CPI (the CPI published for the month that the lease commenced), not the rent in Year 2. So if CPI rose 8% in Year 2 but you had a fixed bump in Year 2, the Year 3 adjustment still measures from the base year — you don't compound the Year 2 bump.
Caps to note:
• Annual cap: 5% of the prior year's base rent
• The cap is not a floor — you do not catch up if CPI drops below 2%
• A "absorbing" clause (Section 4.3(c)) allows the tenant to absorb the first $150/mo of excess if they exercise the renewal option — relevant for the Year 5 renewal negotiation
Commercial Lease — Maple Commons 2025.pdf
"...Section 4.3(a): Commencing on the third anniversary... annual base rent shall increase by the greater of (i) CPI for the prior lease year, or (ii) two percent (2%)..."
Cited · Page 14
REBNY Standard Form — Office Lease 2023.pdf
"...Base Year CPI shall mean the CPI published for the month in which the Rent Commencement Date falls..."
Cross-referenced · Page 3
Commercial Lease — Maple Commons 2025.pdf
"...Section 4.3(c) Tenant Absorbing Clause: tenant may elect to absorb up to $150 per month of the excess..."