What Color Is Your Lease?March 22, 2012
Green leasing is becoming an increasingly popular concept – one that evokes images of buildings that use no energy, where every space has an operable window and solar powered robotic vacuums quietly recycle water bottles and compost leftover lunches. Although these buildings don’t exist yet, the idea that a “green” lease will somehow make it so is a common misconception. So what is a green lease? How can you tell? And perhaps most importantly, how much will it cost?
Our Cassidy Turley report on the subject covers issues such as defining a green lease, main tenant concerns, key lease terms and practical dilemmas faced when endeavoring upon entering into a lease focused on sustainability.
Did you know…
- The bulk of the clauses in a green lease are similar to those found in a typical lease but some are modified to obtain some sort of sustainable goal?
- One of the key questions is how green leasing can complement, or conflict, with the tenant goal of cost control and productivity improvement?
- A green lease will normally provide mechanisms for the landlord to install more efficient systems and use the savings generated to offset the higher capital costs?
- A green lease will normally require construction work to comply with a green standard such as LEED?
- A tenant will often want assurance that future base building and other tenant improvement projects will also be conducted in a green fashion?
- Green cleaning specifications may call for special HEPA filters on vacuums to reduce airborne dust and the use of non-toxic supplies?
Amid the best intentions of parties to act in a sustainable way, there are practical dilemmas that are still being considered and choices need to be made. Important questions are being raised in “Either/Or” scenarios.
|Forgo strong anti-microbial cleaners||Prevent dangerous diseases (i.e. swine flu)|
|Reduce or eliminate outdoor pesticides||Prevent West Nile Virus carrying mosquitos|
For the full story on these and other practical issues, please read the full article What Color Is Your Lease?