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How California's Title 24 Can Impact Leases
Editor's Note: This article was prepared by and first appeared on GlobeSt.com, an ALM sibling publication of this newsletter.
The most significant effects that California Code of Regulations Title 24 has on a lease relates to which party will bear the cost of the upgrades required to make the space compliant with the legislation, Steven Shupp, project management director for CBRE in San Diego and Newport Beach, CA, told GlobeSt.com, a sister publication to Commercial Leasing Law & Strategy. Title 24, which went into effect in July 2014, is intended to increase the electrical efficiency of California's buildings; the energy code impacts the replacement of lighting fixtures and modifications to existing electrical infrastructure. GlobeSt.com spoke exclusively with Shupp about how the law can affect lease rates and what tenants and owners should know about it.
Q.: What are the most significant effects Title 24 has/will have on leases?
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