John J. Duane Realty Corp. v. Great Atlantic & Pacific Tea Co.

John J. Duane Realty Corporation (Duane) leased a parcel of real estate to The Great Atlantic & Pacific Tea Company (A & P) for a term of ten years commencing September 1, 1959, with a provision for three five-year extensions at the option of the lessee, two of which had been exercised when this *900action was brought. The lease contains a tax escalation clause, applicable only during the extension terms of the lease, which provides that the rental reserved on the extension privileges is based in part on an estimated real estate tax of $10,000 per annum and that "[i]n the event the real estate…