When considering the term of a lease renewal, bear in mind that longer-term leases are more sustainable since they conserve resources, reduce waste, and minimize the impact of future tenant improvements. Indeed, LEED® for Commercial Interiors even provides a credit for leases with terms in excess of 10 years. When considering the cost-effectiveness of undertaking an efficiency measure, the determining factor is often the length of time required to recover the initial capital investment through reduced operating expenses, generally referred to as the “payback period.” Longer lease terms create greater opportunities to undertake energy efficiency and sustainability measures with longer payback periods.
