Escalation Clause | Practical Law

Escalation Clause | Practical Law

Escalation Clause

Escalation Clause

Practical Law Glossary Item 8-502-6543 (Approx. 2 pages)

Glossary

Escalation Clause

Also known as a stop clause or participation clause. In a commercial lease, a provision that requires the tenant to pay its pro-rata share of increases in building costs, such as real estate taxes and operating expenses. The tenant's payments under an escalation clause are in addition to the base rent payable by the tenant under the lease.