RENT INDEXATION Clause Samples
The Rent Indexation clause establishes a mechanism for adjusting the amount of rent payable under a lease over time, typically in line with inflation or a specified index. In practice, this means that the rent may be reviewed and increased periodically—such as annually—based on changes in a consumer price index or another agreed-upon benchmark. This clause ensures that the landlord's rental income keeps pace with economic changes, protecting against the erosion of value due to inflation and providing predictability for both parties.
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RENT INDEXATION. Once a year, on the anniversary date of the coming into force of the lease, the rent will be adjusted to the cost of living based on the fluctuations of the "health" index according to the following formula: New rent = base rent x new index Base index The base rent is the one set in article 3. The new index is the index of the month preceding the anniversary of the entering into force of the lease. The base index is the "health" index for the month preceding the month in which the lease agreement was entered into, that is to say the index for the month of August 2018, to wit ................... (base 2013 - health index). The index in question is the index designated and calculated in accordance with the legislation. It is available on the website of the FPS Economy: ▇▇▇▇://▇▇▇▇▇▇▇.▇▇▇▇.▇▇/fr/statisitques/chiffres/economie/prix_consommation/indices_prix_consommation All taxes and duties of any kind levied directly or indirectly on the leased property (such as the tax on waste removal) are payable by the lessee, except for the property tax which is payable by the lessor. The lessee undertakes not to use all or part of the leased property, without the prior written authorization of the lessor, for any professional activity, any commercial activity likely to fall within the scope of the law on commercial leases being otherwise formally proscribed. If the lessee allocates all or part of the leased property for professional or commercial purposes without the agreement of the lessor, the additional tax that may be levied on the lessor due to the use for professional purposes by the lessee will be incumbent on the lessee and will be due at the same time as the rent of the month following the month of the lessor’s request.
RENT INDEXATION. CG. 5.1. The rent shall be indexed, by right and without any application or request, as of the Effective Date of the Lease, every year on the anniversary date of the Effective Date of the Lease, depending on the variation of the Rental Index for Tertiary Activities (ILAT) as published by INSEE. Said index is acknowledged by the Parties as being directly related to the purpose of this contract. For the first indexation, which must take place upon the anniversary date of the Effective Date, the annual rate of index change shall be calculated as a function of the change in the base index, which shall be the latest index published on the Effective Date of the Lease, and in the revision index, which shall be the index of the same calendar quarter in the following year. For the following indexations, the base index shall be the revision index used for the previous indexation, and the revision index shall be the index of the same calendar quarter in the following year, and this will be repeated during consecutive years. Failure to immediately adjust the rent shall not cause any forfeiture of the rights of the Parties to require retroactively a future application of this provision.
CG. 5.2. In the event of a delay in the publication of the applicable index, or its non-publication, at a given indexation date, a provisional rent shall be set. Said rent shall be calculated based on the latest published index at the time of rent adjustment. Such provisional rent shall be regularized (with addition or restitution) once the final index is published. Upon publication of the final index, Lessor shall inform Lessee of any rent change, as the case may be, due to the application of the index, and the Parties pledge to regularize immediately the accounts due to the application of the indexation provision, i.e. the amount of the new rent as well as the resulting increase in the guarantee deposit.
CG. 5.3. In the event that the index retained by the Parties is not published, or disappears, or if the selected index may not be applied, for any reason whatsoever, the Parties expressly agree to: - Replace such index, either by the new legal index that would be published as replacement and that would be obligatorily applicable, pursuant to the laws and regulations, to the Lease, or, failing that, by a similar index selected by mutual agreement between the Parties; - In the absence of a replacement index or an agreement between the Parties, replace such index by the index of the cons...
RENT INDEXATION. The Annual Rent, as provided in the Special Conditions, is linked to the health index. Each year, on the anniversary of the Commencement Date of this Lease Agreement, the Annual Rent shall be automatically adjusted proportionally according to the following formula: Base Rent x New Index Figure = Adjusted Annual Rent, where Base index figure Ø Base Rent is the amount specified in the Special Conditions Ø Base Index Figure is the health index figure for the month preceding the signing of the Lease Agreement; Ø New Index Figure is the health index figure for the month preceding the anniversary of the Commencement Date. As a result, any change in the index will automatically and without notice lead to a proportional adjustment of the (adjusted) Annual Rent, which can never be lower than the (adjusted) Annual Rent applicable at the time of adjustment. It is expressly agreed that the Lessor may only waive the increases resulting from this clause by means of a written and personally signed declaration. If the calculation basis of the official health index figure is changed or the index is abolished, the Parties expressly agree that the Annual Rent amount will be linked to the conversion rates published in the Belgian Official Gazette, or to any system that replaces this index and is used as a payment basis for civil servants. In such case, the (adjusted) Annual Rent shall never be lower than the last payable (adjusted) Annual Rent calculated under the previous indexation method. If no such system exists for any reason, the Lessor shall have the right to invoke the increase in cost of living. The Parties shall make every effort to reach an agreement on a replacement formula. In the absence of mutual agreement, the new basis shall be determined by a panel of three arbitrators, two of whom shall be appointed by each Party, and the third, acting as chairperson, shall be appointed by the first two arbitrators. If one Party fails to nominate its arbitrator within one month after being requested to do so by the other Party, the other Party may request the Justice of the Peace of the location of the Leased Property to appoint the arbitrator. Either Party may initiate this procedure if an arbitrator does not agree to the choice of the third arbitrator. Each Party shall bear the costs of its own arbitrator. Any court costs and the costs of the third arbitrator shall be shared equally between the Parties.. Lease agreement INTERVEST NV – GALAPAGOS NV
RENT INDEXATION. REVISION:
RENT INDEXATION. 1. The Parties agree that the rent for the lease specified in § 11, point 1, and the factor defined in §2, point 8 hereof, will be indexed annually according to the average rate of increase in the prices of goods and services for the previous year, as published in the Official Gazette of the Republic of Poland by the President of the Polish Statistical Office. The first indexation will be made in February 2016, based on the rate for the year 2015. Subsequent indexations shall be made each successive year in February. The rent indexation made as stated above does not require an annex hereto. The Lessee shall be notified in writing about the amount of the change.
2. Regardless of the indexation referred to in §12, point 1 the Lessor shall reserve the right to unilaterally change the amount of rent for reasons beyond the control of the Lessor, ie. in the event of new statutory charges or increase in the existing ones, including fees for perpetual usufruct, related to the subject of the lease. Should they arise, the Lessee shall be promptly notified of this fact by the Lessor.
3. The change in the amount of rent determined in such a way and for the reasons set out in §12, point 2 shall take effect on the date indicated in the notice, and the rent shall increase by the amount resulting from the changes and does not constitute an amendment to this Agreement that would require the annex hereto to be valid.
RENT INDEXATION. As of right, the rent will increase annually on the effective date of the lease in proportion to changes in the national cost of construction index published by the National Institute of Statistics and economic studies, base 100 in the fourth quarter of 1953. For the first year, the index set out in Article 30 of the Special Conditions will be compared with the index for the same quarter of the following year. For subsequent years, the index used in the previous revaluation and the index used for the same quarter of the following year will be compared. If the index chosen for annual indexation ceases to be published, such indexation would be made on the basis either of the legal replacement index or a new index chosen by mutual agreement between the parties. In the absence of agreement, the parties undertake to rely on the decision of the judicial expert appointed by order of the President of the High Court of Paris on the request of the most diligent and expeditious party Shared. This conventional indexation of rent is an essential and decisive condition of this lease, without which it would not have been granted. In addition, the legal revision currently provided for by Article l145-38 of the Commercial Code remains applicable.
RENT INDEXATION. The parties expressly agree to subject the rent set out in the present terms to an escalation clause. As a result, the rent shall be automatically adjusted, upward or downward, on 1 January of each year, according to the quarterly index of the cost of construction published by the I.N.S.E.E. (French National Statistics Office). The reference index will be the last index published on the date the lease comes into effect. If, on 1 January of each year, the date when the indexation shall be applied, the I.N.S.E.E. index has not been published, the rent shall provisionally be paid at the former rate. A readjustment will be applied on publication of the index, and remaining rent will be retrospectively due from the Lessee. If the chosen index ceases to be published, it will be rightfully replaced by the index that will take its place administratively, via application of the link ratio established to this effect by the government. Failing administrative determination of a replacement index, a new index shall be determined by the parties or, failing agreement between the parties, through arbitration or the courts. If, for any reason, either of the parties were not to claim the benefit of the present clause, paying or cashing the rent at the former rate would not, in any case, be considered as an implicit waiver of the provisions of the indexation. In order to be taken into account, this waiver must result from a written agreement. The parties agree that the indexation clause is an essential and determining provision in their will to enter into a contract, without which the lease would not have been closed. They also agree on its validity for the current lease and its successive renewals.
RENT INDEXATION. If not expressly excluded, indexation of the rent is allowed, provided that the lease is registered. Indexation can be requested at the earliest on the anniversary date of the commencement of the lease and is calculated according to a legal formula which takes into account the evolution of the health index: Le base rent is the rent fixed at the beginning of the tenancy. The new index is the health index of the month before the month of the anniversary date of the beginning of the lease. The starting index is the health index of the month before the month of the lease signature. You can find the health index on the following web page : ▇▇▇▇▇://▇▇▇▇▇▇▇.▇▇▇▇.▇▇/fr/themes/prix-la- consommation/indexation-du-▇▇▇▇▇ If the lessor requests indexation of the rent after the anniversary date of the commencement of the lease, the indexation will only have effect, for the past, for the 3 months at most preceding the date of the request.
RENT INDEXATION. The rent will be readjusted at the end of each annual period, upwards or downwards, ipso jure and without any formality or request, according to annual variations in the French index of rents for tertiary activities (ILAT) published by INSEE (base 100: last quarter 2010). For the first indexation, the annual indexation rate will be calculated on the basis of the base index referred to in Article XVII, and the revision index will be the index for the same quarter of the following year. For subsequent indexations, the base index will be the previous revision index, and the revision index, the strictly corresponding quarterly index for each subsequent year. If this index is not known on the anniversary date of the Lease, the LESSOR may proceed with a provisional indexation based on the last known index. Should the chosen index disappear, or be inapplicable for any reason whatsoever, it will be replaced by the replacement index or, failing that, by any similar index to be determined or, if necessary, reconstituted by an expert appointed to act for both Parties (hereinafter the “Expert”) who will be appointed either by agreement of the Parties, or, failing this, by an order issued at the request of the most diligent Party by the President of the Court of Justice, who, in the event of refusal, departure or impediment of any kind whatsoever, will be replaced in the same manner. In all cases, the Expert will have all the powers of a representative appointed to act for both Parties and its decision will be binding on the Parties and will therefore be final and without recourse. Pending the Expert’s decision, the LESSEE may not defer payment, and shall make a provisional payment upon presentation of the receipt, equal to the amount previously paid, the readjustment taking effect retroactively to the effective date of the revision. The LESSEE expressly acknowledges that the above indexation clause constitutes an essential and determining condition of this Lease, without which it would not have been concluded.
RENT INDEXATION. 4.3.1 The rent will be indexed to the tertiary activities rent index (TARI) published quarterly by INSEE [National Institute for Statistics and Economic Studies], on the anniversary of the Effective Date of the Lease. The parties acknowledge that this index is directly related to the subject of this Lease and to the Lessor’s business. The indexation will be calculated each year using the following formula: The first indexation will be made on the date specified in Article 5 of Chapter B by taking: - as reference rent, the rent specified in Article 4 of Chapter B, - as reference index, the last index published by INSEE on the Effective Date of the Lease referred to in Article 5 of Chapter B, - as comparison index, the index of the same quarter of the following year. The following indexations will be carried out on each anniversary of the Effective Date of the Lease by taking: - as reference rent, the rent in effect at the time of indexing, - as reference index, the comparison index used in the previous rent indexation, - as comparison index, the index of the same quarter of the following year.
4.3.2 Upon termination of publication or disappearance of the index selected for rent indexation before the expiration of the Lease, and if a new index was published replacing the current one, the rent will be indexed as of right to this new index and the shift from the previous index to the new index will be performed by using the required revaluation rate. If no replacement index is published, the Parties agree to replace it with an index chosen by mutual agreement. Failing agreement between the parties, the replacement index will be determined by an expert appointed by the parties. In the event of disagreement on the expert’s name, the same shall be appointed by the President of the High Court from the location of the Building at the request of the first party to take action. The expert fees shall be borne equally by both parties.