Knowledge of environmental issues facing commercial buildings is rapidly becoming a necessity. Demand for “green” space is on the upswing, with governmental agencies leading the charge for LEED and Energy Star certified buildings.
So how do you incorporate green principles into your office leases? Sure, you can take the easy way out and add a couple of plug-in green terms to your traditional office lease. Or you can think green every step of the way, by establishing sustainability goals, looking for a site within LEED/ Energy Star parameters, using an RFP with LEED/Energy Star related questions, preparing a letter of intent with core green business terms–and ultimately drafting a lease that incorporates green policies and tracks LEED/Energy Star guidelines.
Tips for greening your office lease:
- Clearly define the roles of all parties to the lease, including which party is responsible for obtaining LEED/Energy Star certification and when.
- Make sure you spell out which LEED/Energy Star rating system is applicable. There are many.
- Be sure to allocate environmental incentives such as tax credits and rebates, between the parties.
- Spell out the landlord’s obligation to stay green—to maintain the green building systems and certification.
- Consider a long-term lease (i.e., 10 or more years).
- Create a qualified team (attorney, engineer, and other consultants) who are experienced LEED/Energy Star professionals.
- Building Rules and Regulations – The lease exhibit stipulates a building-wide recycling program.
- Gross lease format with appropriate escalation clause and expense stop clause to reward landlord for operating a high-performance building.
- Appropriate operational procedures and building control/management systems for charging tenants for after hours/excess energy usage, supported by appropriate lease language.
- Right to Audit – This lease clause protects the tenant from overcharges and defines the audit process to protect the landlord from frivolous audits.
- Hazardous Materials – A clause that defines what it is and that neither the landlord or any tenant violates laws or regulations regarding the hazardous materials.
- Green Cleaning Specifications – This lease exhibit should define the materials, procedures and protocols for cleaning the building in a sustainable manner.
