The Commercial Tenant's Guide to Construction, Relocation & Facility Maintenance

by Brian Sahn, Esq., & Jared Newman, Contributing Columnists

As the costs of energy-efficient retrofits and green practices trend downward, they are becoming more common, and less of a novelty in commercial buildings. A “green lease” is an effective tool for allocating the costs and benefits of operating a green building between the landlord and tenant. Unlike a traditional lease, a green lease encourages the parties to work together through the construction and occupancy phases, and create opportunities for both parties to reduce operating expenses.

Provisions of a green lease will vary depending upon the scope of energy-efficient building systems and green practices in the building. At the most basic level, a building’s recycling program and government-mandated energy reporting should be addressed. On the other hand, a lease in an aspiring or existing LEED-certified building should be much more extensive, and allocate responsibility for the denial of or loss of certification…

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