Recently, there has been an uptick in Environmental, Social, and Governance (“ESG”) factors being considered and incorporated into commercial real estate transactions.
As the focus on mitigating climate change has risen, the commercial real estate industry has seen an increase in green buildings and clean energy infrastructure.
The desire to incorporate ESG factors in the industry has even trickled down into commercial real estate leases. Leases, which include various provisions to promote energy-efficiency and environmental sustainability, are often referred to as “green leases.” Green leases can be tailored to meet landlord and tenant requirements, as well as building specific needs. Here are some common ways landlords and tenants can incorporate green leasing provisions into commercial real estate leases.
While this article focuses on Leases, new-builds and owners will be the next focus.
Read more: https://www.mondaq.com/unitedstates/environmental-law/1177362/incorporating-environmental-sustainability-concepts-into-commercial-real-estate-leases?email_access=on