CBA Real Estate Law SectionMay 6, 2010 Denver, Colorado

Green Leasing:

Essential ConsiderationsFor Sustainable Development

Neil B. Oberfeld ISAACSON ROSENBAUM P.C.

Presenter:

Why do I need to think differently when draftingor negotiating a green lease?

Why do I need to be a green attorney?

What is GREEN LEASING?

increasing the awareness of the environmental impacts and benefits from sustainable and other green practices.

A lease that specifies environmental standards, obligations and requirements for both landlord and tenant, for the purpose of:

increasing energy efficiency

decreasing the environmental impact of building operations

emphasizing the use of recycled materials and sustainable practices

achieving LEED certification (or other green)

objectives of either landlord or tenant

Outline of Topics

1. Initial Construction, Build-Out and Landlord Work2. Tenant Finish and Alterations

3. Building Management and Operation

4. Building Transportation Issues

5. Enforcement

6. Tax Credits

7. Solar Panels/Wind Turbines, etc.

Dependent upon type of LEED certification desired. New building construction or rehab of existing building? Landlord’s architect must comply with LEED certification

standards. Use of recycled materials. Sustainable design. Lobby and other public spaces. Green roof/cool roof. Energy efficient glass. Energy efficient build-out. Natural light. Landlord to apply for and obtain/maintain the LEED

certification.

1. Initial Construction, Build-Out and Landlord WorkLEED: Leadership in Energy and Environmental

Design

Tenant Finish.

Require use of specific materials.

Compliance with building’s LEED certification.

Energy efficiency build-out.

Energy efficient appliances.

Natural light.

Is Tenant Finish to be LEED certified?

Subsequent tenant alterations.

2. Tenant Finish and Alterations

Landlord to separately meter energy and water for each tenant.

Landlord to use environmentally friendly cleaning supplies. Reuse of gray water and storm water Establishing a building-wide recycling program Landlord to monitor, report and reduce energy consumption Landlord right to adjust service charge contributions between

tenants to reflect the success of individual tenants. Landlord to ensure that all fundamental building elements and

systems are installed and operated to maximum efficiency. Water efficient landscaping. Information, education and instruction regarding best

practices – tenant new employee manuals. Landlord repairs and modifications

3. Building Management and Operation

4. Building Transportation Issues

• Public or private transportation.

• Bicycle facilities.

• Preferred parking programs.

Demand for compliance and/or performance.

Default and general remedies.

Cure and self-help rights.

Injunctive relief and specific performance.

Damages: actual and consequential.

Penalties and liquidated damages.

Termination.

5. Enforcement

Landlord’s property. CAM reduction. Tenant’s property.

6. Tax Credits

7. Solar Panels/Wind Turbines, etc.

Landlord’s use for building services.

Landlord’s use for profit unrelated to building operation.

Tenant’s use for premises services.

Tenant’s use for profit unrelated to building operations.

Thank you

Neil B. Oberfeld ISAACSON ROSENBAUM P.C.

1001 17th Street Suite 1800 Denver, CO 80202-2058

noberfeld@ir-law.com