is any gross, net, net-net, or triple lease that contains a “step up” (or step down) in the amount of rent paid based on some time table or event.

A common “escalator clause” might call for rent to increase by $2.00 square foot annually on each anniversary of the lease. The step up will be an attempt to provide rent increases as the market rent rises. Naturally, if the step up rate is higher than the increase in market rents, the owner will benefit. If the market rates rise faster than the step up rates, the advantage would go to the tenant.