The Problem of Inflation in Lease Negotiations

  • July 21, 1977
  • • Written by: Max J. Derbes, Jr., CRE 

Summer 1977, Vol 2, No 1

Abstract: The author explores the various options available to the counselor in advising his client so that the client with not sacrifice purchasing power of future rents provided in the long-term lease. There is no universal solution to this perplexing problem, which has been aggravated by the severity of the inflation rate in recent years. He shows the factors that affect the decision such as the fixed mortgage costs, costs of living, expenses of lessor, and suggests some modifications of current practices which may be more acceptable than the extreme measures now in vogue.