Green leases—less talk, more action

Table of contents

• Green leases—why now?
• How green is green?
• Environmental call to action

Article summary

Property analysis: Demand for sustainable, energy-efficient buildings continues to rise, and their social, environmental and reputational benefits are now widely understood. In the context of leased premises, steps towards increased sustainability can be addressed in part through the negotiation of a ‘green lease’. At its heart, this is an otherwise conventional lease, differentiated by the inclusion of varying degrees of environmentally-conscious provision, ranging from the promotion of co-operation and collaboration between landlords and tenants to promote sustainable practices, to more stringent provisions such as those dictating renewable energy reliance. What green provisions have in common, however, is their acknowledgement of the urgency of taking action towards reducing the net environmental impact of a building, its use and occupancy. Ben Farnell, partner, Kate Austins, associate, Joanne Shakespeare and Katherine Lang, knowledge lawyers at Baker McKenzie, consider the key issues.