European legal and tax services provider CMS has disclosed the first standard green lease clauses applicable across Europe at the MIPIM international real estate trade fair in Cannes.
The 20 clauses, which are accessible as a CMS e-guide, will simplify the deployment of green leases across one or more European countries.
“The real estate sector sees the benefit of green leases. However, faced with complex local legislations, it struggles to achieve a consistent implementation,” says Dirk Rodewoldt, partner at CMS Hasche Sigle. “The situation in Europe is fundamentally still as it was in September 2011. Green leases are on the increase and the trend is for standard convergence.”
In order to produce the standard green lease clauses, CMS reviewed the contractual practice, then formulated 20 standard clauses which are applicable across Europe, with national or regional variations as necessary.
“We looked at such aspects as the sustainable management of the building by landlord and tenant, economical use of energy, special green features for operational costs and service charges and structural alternations,” says Arnout Scholten, partner at CMS in the Netherlands.
Green Lease Clauses in Europe – a practical approach, allows investors, managers and occupiers to streamline their contracts across their European operations.
“Investors will see it as a way to protect their investment with the property’s sustainability maintained during its lifetime,” says Bruno Duquesne, partner and head of real estate at CMS Belgium. “Managers will be interested in the cost-saving potential of standardising their legal texts. Occupiers will be pleased that the property remains sustainable throughout their tenancy, resulting in cost savings.”