Our project has a lease agreement for 5-year period only as the leasing protocol of the Landlord is maximum of five years with option to renew. To satisfy the credit requirement, can a Letter of Commitment from the tenant, committing to extend/renew the lease for another 5 years after the expiration of the lease agreement be acceptable?
Further, the tenant has allocated sizeable budget for the renovation and thus will remain in the premises for at least 10 years.
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Tristan Roberts
RepresentativeVermont House of Representatives
LEEDuser Expert
11477 thumbs up
November 4, 2013 - 10:46 am
Annabelle, I am not sure that this would pass muster with GBCI. I would email them for clarification. I have seen GBCI be sticklers with this credit, but in my opinion there should be some allowance for projects like yours to make reasonable accommodations that fit with the intent.
Ameet AA
41 thumbs up
October 13, 2014 - 6:35 am
Hi Tristan and Anabelle, Any updates have you received from GBCI on this issue? I would be delighted to know more as my project is in similar situation.
Thanks!
William Weaver
LEED Fellow, WELL APJLL
181 thumbs up
April 23, 2015 - 12:02 pm
I just had a project certified that was denied this credit. We had a similar circumstance where the landlord allowed a maximum lease duration of 7 years with an option for a 5-year renewal. The lease was signed for the maximum allowed duration, including the renewal option. We provided a copy of the full lease agreement along with a Letter of Intent to commit to the full 12-year duration.
We were denied the credit on the basis that the lease term was not for a 10-year period, and that the renewal option plus LOI while promising, did not guarantee the tenant would see the full term through.