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In an evolving commercial property sector, environmental sustainability is no longer a buzzword. As corporate occupiers favour buildings with enhanced aesthetics and greener credentials, the green lease is gaining traction as a means of embedding sustainability into commercial real estate.
A green lease essentially follows the form of a standard commercial lease, but with additional ‘green’ clauses. The function? To encourage landlords and tenants to work together to save money and reach building efficiency goals.
We have recently seen an update to The Better Buildings Partnership (BBP) Green Lease Toolkit, which is widely regarded as the benchmark for ‘market standard’ green clauses. The Toolkit offers clauses in several key areas, applicable to multi-let offices and adaptable to a range of asset types.
Clauses are categorised into ‘light, ‘mid’ and ‘dark’ green options, enabling users to tailor the transaction at hand. Light green clauses promote shared compliance, whereas dark green clauses may encompass more detailed obligations on either party or both.
In summary, incorporating green clauses into commercial property leases is a proactive step towards sustainability, benefiting both landlords and tenants. We are increasingly seeing sustainability initiatives addressed at Heads of Terms stage, encouraging collaboration at early doors and streamlining the transaction.
Whether you are a landlord looking to enhance the value of your property or a tenant aiming to align with your sustainability goals, adopting green lease clauses could be the right choice.
Our Commercial Property team at Boyes Turner can assist you with adopting the appropriate clauses to incorporate into your commercial lease.
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If you have any questions relating to this article or have any commercial property matters you would like to discuss, please contact the Commercial Property team.
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