In a variable lease, how does the tenant's rent obligation typically change?

In a variable lease, the tenant's rent obligation typically changes based on specific economic indicators, and one common method is by linking rent increases to the consumer price index (CPI). This means that as inflation occurs and the cost of living rises, the rent can adjust accordingly, reflecting current economic conditions. This approach helps ensure that the lease remains fair and equitable over time, as it is responsive to changes in the market.

The option stating that the rent stays the same for the entire lease term describes a fixed lease, where the obligations are stable and predictable. Similarly, stating that the rent is fixed and does not change is characteristic of a static lease agreement. The other stance, indicating that the rent is reduced if sales decrease, typically aligns more with a percentage lease arrangement, which may not be what is considered a traditional variable lease in the context of adjusting rents based on economic metrics like the CPI.