CPI Escalation Clauses in Office Leases

CPI-linked escalations in office leases require landlords to apply the correct index series, use the right measurement period, and apply any contractual caps or collars in the proper sequence. When the index series is misconfigured in billing systems or cap logic is not enforced, the compounding effect across multi-year terms is significant — and the error is invisible in financial reporting until an audit traces the billed escalation back to the actual index values and lease language.