Escalator clause

Part of a net lease. A provision that increases the rent payable under a lease when certain costs of the building increase (i.e. taxes, utility charges, etc.).The escalation rate is the rate (%) by which a rental is increased annually. An escalated rental and a market rental are not necesarilly the same.

Part of the Commercial Property glossary — plain-English definitions of the terms you meet when leasing, buying or selling commercial space in South Africa. See also our how-to guides.