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ARTICLE · 25 MARCH 2013

Green leases: co-operation between landlord and tenant is key

Landlords and tenants are increasingly considering environmental issues for incorporation into lease terms.

AustraliaReal Estate and Construction

In brief - Lease documents should take a cooperative approach to green provisions

It is essential that landlords and tenants discuss openly what the expectation of each party is with respect to environmental issues and that the lease document contains a co-operative approach to identifying and dealing with environmental issues and concerns.

A green lease should set out each party's requirements but also allow for flexibility

Both landlords and tenants are increasingly considering environmental issues as a key ingredient for incorporation into lease terms and negotiations.

Whilst parties should define the requirements and position of each party at the outset of the lease, the lease needs to be flexible to allow for inevitable changes throughout the term of the lease, particularly brought about by emerging technologies and trends for dealing with environmental issues.

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