What incorporates an increment of base rent at each renewal in a lease agreement?

The correct choice is the escalation clause, which is specifically designed to incorporate an increment of base rent at each renewal in a lease agreement. This clause allows for rent adjustments based on predetermined factors such as inflation, increases in operating costs, or other market conditions.

An escalation clause is beneficial for landlords as it ensures that the rental income keeps pace with rising costs, while it can also provide tenants with a clear understanding of how much their rent may increase over time. This transparency can help both parties plan their financial commitments more effectively.

In contrast, termination clauses provide the rights to end a lease earlier than anticipated but do not involve adjustments to rental amounts. Renewal options allow a tenant to extend the lease period but may not specifically address changes in rent. A fixed rate clause maintains the same rental amount throughout the lease term without any increases, which does not align with the scenario described in the question.