The Green Lease | Real Estate

Running head: REAL ESTATE
Real Estate
Name of the Student
Name of the University
Author Note

REAL ESTATE1
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
The Green Lease....................................................................................................................2
Important Elements................................................................................................................3
Benefits of Green Leases.......................................................................................................3
Issues for Commercial Property Asset Managers..................................................................3
The Use of the Legal Terminology used to secure ‘Green Lease’ Terms..............................4
Green Lease Split Incentive Issue..........................................................................................5
The Continuing Impact of the Minimum Energy Efficiency Standards (MEES)..................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

REAL ESTATE2
Introduction
There is a significant association amongst the structures of lease and efficient
operations for eco-friendly buildings in an open market of the UK where the structures of the
lease vary. The net lease gives a natural incentive for an occupier to function proficiently and
to eradicate the requirement for further green clauses that find to control the behavior of
tenant to uphold eco-label certifications (Collins 2018). In recent years, there has been a
substantial increase in the extent of guidance, policy, and legislation in terms of sustainability
and corporate social responsibility targeting commercial and public properties that are the big
energy consumers. In concern of this, green leases have taken an enlightened step ahead for
sustainable development (Collins, Haugen and Junghans 2018). They are the lease that
specifies particular provisions in terms of the sustainable property's operations.
Discussion
The Green Lease
A green lease means a lease of a commercial or public building that includes an
agreement amongst a tenant and a property owner regarding how a building is occupied,
functioned and managed in a sustainable manner. It can consists of several measures in terms
of energy efficiency, waste management, waste reduction, water efficiency and so on (Janda
et al. 2016). This can include both tenant and landlord and used for the leases of commercial
buildings as well as for public buildings. It links sustainable building design with those
obligations, which are post-constructive on lessor and lessee of commercial property to attain
environmentally sustainable improvement purposes. In other words,
 Green Leases effects the party's desire to develop and be held responsible for energy
efficacy at a building.