Landlords and tenants have historically failed to adopt “green” leases due to their reputation for being overly burdensome. We are seeking to change this perception and, in doing so, protect asset value and enhance sustainability performance.
As part of this drive, in the UK, a "New Lease Considerations Guide" and accompanying lease provisions have been developed in partnership with CBRE's Energy & Sustainability team and external legal advisors. The clauses range from provisions to protect the landlord against existing and future legislative exposure, to those reflecting the increasing occupier and investor expectations on landlords to engage and collaborate with tenants on the sustainability performance of assets. This successful pilot will now be rolled out to other regions.
In addition, we include green clauses in property management contracts. Examples are described below:
- We always include reporting requirements for energy, water and waste consumption for properties.
- For an office property in Paris, there is a particular article in the contract entitled “Politique environnementale: Green Management."
- For an office property in Amsterdam, there is a specific article and an appendix related to Green Management.
Our green language in our property management contracts are examples of how we are leading the industry in this area.
In 2019, we began to research and develop appropriate green lease provisions in partnership with external legal advisors and will finalize in 2020 with the help of newly appointed Code Green as the external ESG consultant for the Americas direct business.