Answer with Explanation:
A "graduated lease" is a type of lease that is long-term in nature. Here, the lessor/landlord enters into an agreement with the lessee/tenant/occupant that the property that the tenant will be renting is subject to an increase or decrease in the rental fee depending on its market value as the years pass by. So, this means that the rental fee is not stable or fixed, rather it changes with times.
This lease is also called a "graded lease." An increase in rental fee is common for real estates that are being rented while a decrease in rental fee is common for equipment or machinery that are being rented.