What defines a "fixed lease"?

A "fixed lease" is characterized by its consistent rental amount and a clearly defined term that remains unchanged throughout the duration of the lease agreement. This type of lease provides stability and predictability for both the lessor and the lessee, as the terms, including the amount of rent and the length of the lease, are agreed upon when the lease is signed and do not fluctuate or change over time.

In contrast, leases that can be terminated at any time by either party, or those where the terms can change annually, do not provide the reliability associated with a fixed lease. A lease based on market conditions would also vary significantly, as it would be subject to external economic factors that could impact rental rates. Therefore, both of those alternatives do not align with the core characteristics of a fixed lease, which explicitly emphasizes a stable and unchanging rental arrangement.