 BEPI Article Recap:
Like any other commercial buildings, green buildings will require lease agreements between the owner-landlords and tenants, but they can be unique.
Most commercial leases are so-called "triple-net" leases, whereby the tenant pays, in addition to monthly base rent, additional rent equal to the tenant’s percentage (normally based on the relative square footage of the tenant’s premises versus the square footage of the entire building) of the costs for insurance, real estate taxes, and common area maintenance for the whole building.
Why bother if the tenants are paying the bill?
In a gross lease, the tenant pays a monthly rent which covers all of the tenant’s insurance, taxes and common-area costs.
A green-building lease should have provisions that require tenants to comply with the landlord’s environmental goals. Green leases might:
* require tenants to use efficient interior-lighting systems with occupant sensors and automatic shutoffs;
* require tenants to install low-flow bathroom and kitchen fixtures and/or replace current fixtures and appliances with energy-saving models;
* include a recycling program which encourages all tenants to recycle cardboard, glass, plastic, metal and paper;
The owner’s right to maintain or increase the sustainability of the building may temporarily displace or interfere with the tenants.
The lease should also allocate which of the owner’s capital costs may be passed on to the tenants. Actually, if the owner’s alterations provide savings to the tenants, then some portion of the cost probably should be paid by the tenants.
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Mentioned:
Carbon Offsets: No
Green Building:Yes
Energy Technology:
HVAC Technologies
Energy Conservation
Property:
Corporations:
People:
BEPI Published Date: December 14, 2009
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