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    s numbers: US city average, Northeast urban, Midwest urban, South urban, West urban, as well as 14 major local areas. So you need to know which number is defined in the lease so you c
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    Consumer Price Index (CPI): Most of commercial real estate leases have annual rental increase that is based on the CPI. As an investor you should know what it is. The CPI is a measure of the average change over time the prices paid by urban consumers for goods and services. In a sense it is the measure of inflation as experienced by urban consumers. So as an investor/landlord, you want the rent increased to catch up with inflation. The US Department of Labor, Bureau of Labor Statistics collects data from 87 urban areas in the US which cover about 87% of the population. The data is published each month and available from the website http://stats.bls.gov. Although there is only one name for the CPI, there are various numbers: US city average, Northeast urban, Midwest urban, South urban, West urban, as well as 14 major local areas. So you need to know which number is defined in the lease so you c
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    measure of the average change over time the prices paid by urban consumers for goods and services. In a sense it is the measure of inflation as experienced by urban consumers. So as an investor/landlord, you want the rent increased to catch up with inflation. The US Department of Labor, Bureau of Labor Statistics collects data from 87 urban areas in the US which cover about 87% of the population. The data is published each month and available from the website http://stats.bls.gov. Although there is only one name for the CPI, there are various numbers: US city average, Northeast urban, Midwest urban, South urban, West urban, as well as 14 major local areas. So you need to know which number is defined in the lease so you c
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    n investor/landlord, you want the rent increased to catch up with inflation. The US Department of Labor, Bureau of Labor Statistics collects data from 87 urban areas in the US which cover about 87% of the population. The data is published each month and available from the website http://stats.bls.gov. Although there is only one name for the CPI, there are various numbers: US city average, Northeast urban, Midwest urban, South urban, West urban, as well as 14 major local areas. So you need to know which number is defined in the lease so you c
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    cover about 87% of the population. The data is published each month and available from the website http://stats.bls.gov. Although there is only one name for the CPI, there are various numbers: US city average, Northeast urban, Midwest urban, South urban, West urban, as well as 14 major local areas. So you need to know which number is defined in the lease so you c
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    s numbers: US city average, Northeast urban, Midwest urban, South urban, West urban, as well as 14 major local areas. So you need to know which number is defined in the lease so you can correctly calculate the rent increase. For example, the CPI for US city average was 190.9 in Oct 2004 and is 199.2 in October 2005. This reflects a 4.3% increase for one year. So if the rent from October 2004 to September 2005 was $1000/month and the lease says the rent is increased based on the CPI for US City average then the new rent from October 2005 to September 2006 will be $1043 a month or 4.3% higher.

    Cost of Living Index (COLI): COLI is a number that indicates the relative cost of living in various cities in the US with 100 being the average. You could obtain the indexes for various cities from http://www.infoplease.com/ipa/A0883960.html. The COLI for San Francisco is 177 while it’s only 97.2

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