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CRAFTING THE GREEN LEASE: Green leases are an increasingly common tool for aligning the environmental goals of landlords and tenants, with 42% of corporations already adopting green leases and another 43% planning to do so by 2025, according to JLL. However, crafting a green lease requires careful consideration and collaboration between both parties to ensure that the lease is not just aspirational, but actionable. INCORPORATING GREEN CLAUSES Green clauses in a lease can vary significantly, from "light green" clauses that are more aspirational to "dark green" clauses with legally binding obligations. These clauses can be integrated into new leases or added to existing ones through a Memorandum of Understanding (MoU), which outlines the cooperation needed to enhance the environmental performance of the property. The green lease can either be a separate exhibit attached to the standard lease or integrated throughout the lease agreement's various sections. SETTING CLEAR EXPECTATIONS To ensure the effectiveness of green clauses, it's crucial to set clear expectations for both parties from the outset. This includes defining commitments and backing them up with concrete measures and Key Performance Indicators (KPIs) to monitor progress. Clarity in the obligations and the consequences of not meeting them can help avoid misunderstandings and ensure both parties are aligned in their sustainability efforts. INVOLVING SUSTAINABILITY EXPERTS Involving sustainability experts early on is essential for crafting a successful green lease. These experts can help bridge the gap between commitments and actionable plans, ensuring the lease is ambitious and achievable. Forming building environmental collaboration teams with members from both the landlord and tenant sides can further enhance collaboration and the implementation of sustainability initiatives COLLABORATION AND COMMUNICATION Green leases are most effective when there is a high level of collaboration between landlords and tenants. Open communication about long-term efficiency strategies and alignment of construction needs with sustainability goals can set the stage for successful implementation. This collaborative approach not only benefits both parties but also contributes to the overall sustainability of the building.

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