What type of lease involves specified increases or decreases at defined intervals?

A graduated lease is characterized by predetermined rent increases or decreases at specific intervals throughout the term of the lease. This arrangement provides both landlords and tenants with a clear understanding of future rental expenses, making budgeting easier for tenants while ensuring that landlords can plan for expected income.

In this type of lease, the rental amount typically starts at a lower initial rate, which then increases at agreed-upon times, providing flexibility to accommodate changes in the market or the needs of the business. The explicit increments ensure that both parties are aware of their obligations, fostering transparency and stability in the rental agreement.

Other lease types do not focus on predetermined changes in rental rates. For instance, a gross lease typically involves a flat rental amount where the landlord covers all operating expenses. A percentage lease is often used in retail settings, where the rental fee is based on a percentage of the tenant's sales. A net lease generally requires the tenant to pay for some or all expenses in addition to rent, but it does not establish scheduled rent changes as in a graduated lease. Thus, the unique feature of defined increases or decreases at specified intervals distinguishes the graduated lease as the correct answer here.