I just revised our guidance as shown above in response to USGBC, which let me know that it intends to tighten up on enforcement of this credit's requirements.
Some projects had been approved for the credit by demonstrating an intent to be in the space 10 years or longer, even without a 10-year lease. They did this by investing in long-term improvements that would not pay off sooner than 10 years, for example.
However, I'm told that CB's are now being told not to allow this kind of path.
Jean Marais
b.i.g. Bechtold DesignBuilder Expert832 thumbs up
July 13, 2010 - 4:15 pm
How is the USGBC going to handle sub-leasing. If the tenant has permission to sub-let his space to sub-tenants, do they also have to have 10 year agreements in place? Do I have to have an agreement for each sub-let space? What about spaces not yet sub-let? The build-out may change or be adapted when ever sub-letting parties move in or out and the intent would be to keep 'em locked up for 10 years, but the agreements may start and terminate at different times. For big projects this may be impossible to achieve...and then it may inadvertently dissuade clients for certifying all the spaces. It will then make sense to shoot only for big space let customers with very long time lease ideals.
Tristan Roberts
RepresentativeVermont House of Representatives
LEEDuser Expert
11477 thumbs up
July 13, 2010 - 4:21 pm
Jean, I don't think this is the most commonly achieved credit due in part to issues you raise.However, I don't see any issues with sub-leases. As long as the principal tenant has a 10-year agreement in place, what is the issue?
Jean Marais
b.i.g. Bechtold DesignBuilder Expert832 thumbs up
July 14, 2010 - 12:50 am
I guess I'm thinking of the intent of the credit:
"To encourage choices that will conserve resources, reduce waste and reduce the environmental impacts of tenancy as they relate to materials, manufacturing and transport."
To achieve this you really need to keep the people using the space locked into a 10-year deal. No use in having the tenant have a 10-year deal and the sub-tenants are moving in and out every week, changing at least the appliances they use or the space standing empty.