Exactly what is a fair rent increase? My firm is negotiating a lease upon an industrial building, plus the landlord is asking for a 5% escalation annually. What is the standard rent increase for industrial leases? There are no standard or published lease escalations. Escalation terms are essentially whatever two parties can agree upon. An alphabet soup of rent escalators was common previously, for instance CPI (consumer price index) and COLA (cost of living adjustment). A much more esoteric method of measuring the supposed value of landlord costs was called Porter Wage (with and without fringe benefits.) This tied a tenant’s rental increase on the boost in the price of hiring porters in Ny city. The majority of these lease escalators have fallen via the wayside, and what is most frequent today is a straightforward percentage rise in the rent, usually over the anniversary date with the lease commencement. There are some guidelines that reflect the existing negotiating trends available. A normal rent escalation today can be a 3% to 4% rise in the internet rent each and every year. This tends to vary however, with respect to the term of your lease longer terms such as Many years will either have lower annual increases, or even the “bumps” is going to be spaced further apart, e.g. accommodations increase every 36 months.