Green Leases All The Rage In Commercial Leasing

The need for a sustainable economy and efforts to combat climate change are rapidly changing traditional markets, including the real estate industry. One relatively new phenomenon is the rise of sustainability practices in lease agreements, generally referred to as "Green Leases". As this term is not yet defined under Austrian law, it remains to the parties of an individual lease agreement to negotiate if and to what extent they want to structure their lease as a Green Lease.

General vs. detailed clauses

The structuring of a lease as a Green Lease, i.e. the extent and depth of the respective regulations, may differ substantially depending on the individual agreement between the landlord and the tenant. The spectrum ranges from generic clauses emphasising that the parties care about the environment and intend to cooperate in good faith in this regard, to highly detailed and extensive provisions establishing specific goals and corresponding responsibilities. In both