Green Leases

It is clear that reducing the environmental impact of property is key to the Government's drive to cut the UK's carbon emissions. Energy performance certificates will be introduced across the commercial property sector to promote behaviour change. A recent UK Green Building Council report commissioned by DCLG has opened the debate as to when new commercial buildings can follow the residential industry's example and set a timeframe for zero carbon new buildings. Can leases be used as another way of encouraging or even enforcing behaviour change - or in other words, can they be green?

The lease is the mainstay of commercial property investment, and its terms have a significant impact on the valuation of a property. Landlords and tenants look to the terms of the lease to determine what can and cannot be done in relation to a property, and importantly, who pays for what. Both landlords and tenants could seek