Negotiating a Green Lease Rider in Today’s Marketplace

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Presentation transcript:

Negotiating a Green Lease Rider in Today’s Marketplace Presenters: David C. Longinotti, Hanson Bridgett, LLP Margot Crossman, Unico Properties Meade Boutwell, CBRE Steven Ring, Cushman Wakefield

What we will talk about: Why a Rider? Green Leasing Market update Cooperation Sustainability Practices CAM Charges Utilities Operating Covenants Tenant Improvements

Why a Rider? Supplement Current Lease Form Adopt Best Practices Comply with Green Building Laws Clarity in Negotiations Caveats

Green Market Update 247 LEED Registrations in 2009 EBOM Certification dominated Certification fees 3.5 - 4.5 cents per sq. ft Payback periods vary 9 months to 7 years Tenant HR savings

Cooperation High Performance Benefits Everyone Mutual Covenant Building Certifications and Sustainability Practices Innovation Employee Education

Sustainability Practices O&M best practices plan for energy and water efficiency and other sustainability goals Maintain Green Building Certifications Assure legal compliance Rules and Regulations

CAM Charges Building Certification Costs Sustainability Practices Costs Green Law Compliance Costs Alternative Energy Alternative Transportation Insurance Endorsements

Utilities Adopting the right strategy to improve performance Sub-metering and separate metering Cost Allocations AB 1103 and SF EB Allowable watts

Tenant Operating Covenants Green Building Law Compliance Permitted Use Sustainable Building Operations lighting, daylighting, energy star equipment Recycling, Composting and Waste Management

Tenant Improvements and Alterations Contractor Rules and Regulations, SF Green Building Ordinance LEED Project Manager Cal Green For New Construction TI’s Water Submetering Rooftop Equipment