The indoor condition guarantee procedure and associated lease contract model

Arto Saari, Tarja Takki

Research output: Contribution to journalArticleScientificpeer-review

1 Citation (Scopus)


Purpose - Numerous studies have shown that indoor environment affects health and performance, which in turn affect productivity. Property owners have not utilized Indoor Environment Quality (IEQ) as a value-added factor to market the office spaces. On the other hand, tenants have not had a tool to demand certain indoor conditions. The paper aims to present one market mechanism for including IEQ in office space supply: the office lease contract model entitled Indoor Environment Quality. Design/methodology/approach - The research included a constructive search for a lease contract model for the problems presented above. The need for this novel lease model is proved by the financial calculations. Findings - The lease contract procedure whereby a lessor issues a condition guarantee to a tenant consists of: technical building audit process; and entering the terms of the indoor condition guarantee in the lease contract. It makes sense for the owner to invest in a favourable indoor environment if the benefits are shared. An owner's monetary benefit from improved IEQ is also greatly related to longer lease periods. When tenants stay longer in the same facility there is less empty office space and less need for alterations by new tenants. Therefore, rental income is higher and alteration costs are lower, which in turn lead to higher profitability of the property owner's business. Originality/value - The lease model proposed forms guidelines for taking account of the indoor air quality in lease contracts.

Original languageEnglish
Pages (from-to)144-156
Number of pages13
Issue number3-4
Publication statusPublished - 2008
Externally publishedYes
Publication typeA1 Journal article-refereed


  • Conditions of employment
  • Contracts
  • Customer satisfaction
  • Job satisfaction
  • Leasing
  • Office layout

ASJC Scopus subject areas

  • Organizational Behavior and Human Resource Management


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