MEDIUM-TERM RECOMMENDATIONS
Training for How to Negotiate “Green Leases”
Projected GHG Reduction: Unknown
Implementation year(s): 2011
Many Pittsburgh businesses do not own the building in which they operate. Additionally, if the tenant pays the utilities, the owner of the building has no incentive to pay the capital costs required to perform efficiency upgrades, such as improving insulation, installing new windows, or upgrading lighting fixtures.
Green leases for Pittsburgh office buildings would give owners incentives to upgrade their buildings and provide tenants with better workplaces. The Business Climate Coalition should provide training for local businesses and building owners who are interested in negotiating green leases, which should include a variety measures such as:
- An escalation clause and expense stop clause, to reward landlord for operating a high-performance building.
- An appropriate clause to charge tenants for after hours/excessive energy usage.
- A comprehensive description of building operating costs to protect the interest of both the landlord and tenant.
- Language that allows the landlord to treat the upfront project cost as operating costs, as long as they do not exceed savings.
- A “Right to Audit” clause, which defines the audit process that will protect the landlord from frivolous audits and protect the tenant from overcharges.
- Tenant guidelines that detail the building’s sustainable features and benefits, as well as any special operating procedures for maximizing the building’s features to create a sustainable workplace.
