Brocéliane, a clothing retailer, leases a city-centre unit for a non-cancellable period of 4 years, with an option to extend for 4 years at a rent fixed at the outset, which management expects to be below expected market rents. Brocéliane spends 900,000 on non-transferable leasehold improvements with a useful life of 10 years. This shop is the most profitable in its network, and the retailer in practice keeps its shops for 8 to 10 years. Write a memo determining the lease term at the commencement date.