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Green Issues in Commercial Office Leases
Part One of a Two-Part Series
Tenants are beginning to address green issues in leases for many reasons, including reduced operating costs over the term of the lease and increased productivity among employees. In addition to corporate green policies or shareholder green initiatives, cities and localities such as Washington, DC; Montgomery County, MD; and Boston have passed green legislation of various kinds. Other cities such as Kansas City, MO are considering similar legislation. Many public entities such as the state of California and the city of Chicago have required compliance with green standards for their public buildings and offices for some time. The difference today with the new green legislation being passed in Washington, DC; Montgomery County, MD; and Boston is that the private sector both for commercial and residential projects of a certain scale, not just the public sector, will be required to comply with green standards. This will be especially true if a private development is receiving taxpayer funds. It is very likely that lawyers, real estate brokers, contractors, and other real estate professionals may need to address green issues when looking at space options, reviewing a lease, and constructing leasehold improvements ' not only for a client but also for their own office space.
The U.S. Green Building Council's ('USGBC') (www.usgbc.org) Leadership in Energy and Environmental Design 'LEED Program' has become one standard used to measure sustainability in legislation and local regulations. The USGBC was founded in 1993 and is headquartered in Washington, DC. It is a voluntary, consensus-driven organization whose membership consists of all branches of the real estate and construction industries: architects; engineers; educational institutions; contractors; brokers; attorneys; representatives of federal, state and local government agencies; professional firms and societies; retail; insurance companies; financial institutions; and product manufacturers.
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