by Rebecca Walker — July 20, 2009—A year of work by a group of commercial real estate professionals has resulted in the Model Green Lease. This new lease document brings the green building movement to the economic center of commercial real estate—the lease agreement between the landlord and tenant.
The Model Green Lease was crafted by a task force of attorneys, real estate brokers, corporate tenants, landlords, and green building consultants from both sides of the negotiating table. Collectively, they have negotiated hundreds of office building leases. The task force chair is B. Alan Whitson, RPA, President of the Corporate Realty, Design & Management Institute.
The task force sought to create a lease that is consistent with ASHRAE, ENERGY STAR, Green Globes, and LEED rating systems. But it also can be of value in any building, including those that may not be seeking green certification. It is unique in that it doesn’t favor any of the key players involved in leasing: landlords, tenants, lenders and investors.
The task force claims that implementing the model green lease can reduce energy consumption by as much as 30% – 50%. It addresses key environmental issues such as indoor air quality (IAQ), energy use, carbon credits, recycling, insurance, operating costs, tenant improvements, green cleaning specifications, and building regulations. It also requires an Annual Environmental Performance Report.
Whitson launched the Model Green Lease project, having grown frustrated by the industry’s lack of progress in overcoming the biggest financial obstacle to green buildings – the so-called “split-incentive.”
“We knew that modifying an existing lease wasn’t going to work, and this needed to be more than a symbolic gesture to sustainability,” explains Whitson. “So we started with a blank sheet of paper and a straightforward goal: Create a lease document that encourages green office buildings, maximizes the return on investment for green buildings, and provides a healthy and productive workplace.”
The Model Green Lease is available on CD or downloadable on the Internet. It includes a reference guide on understanding and working with the Model Green Lease, plus an editable copy to use in your own leasing transaction. Information is available online.
