Commercial Real Estate Investment/CPI as lease increase

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Expert: - 3/11/2009


Question
Is there danger in using 100% of CPI as rent increase?
Whould the rent of a comercial building go too high for me the tenant if we use the CPI?

Answer
The country is in recession and inflation could shoot the CPI to record numbers. I think there should be a range on the CPI not less than 1
nd not over 3. We are in uncharted scary waters economically, contracts should not have any conditions that can't be quantified.

Good Luck, TC

Commercial Real Estate Investment

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Terrence Cullen

Expertise

Questions concerning financing of commercial properties.

Experience

Fannie, Freddie, FHA, and conduit versed lender for over a decade.

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