graduated lease - (also called graded lease or step-up lease) a commercial lease in which the lease payments rise according to a predetermined schedule or by reflecting changes in an index (such as the rate of inflation) over the term of the lease. An example is an office lease with first-year payments of $4,000/month and an inflation clause. If inflation in year 1 were 3%, the lease payment in year 2 would be ($4,000 + 3%), or $4,120/month.

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