CMS announces first pan-European standard green lease clauses
Leading European legal and tax services provider CMS discloses first standard green lease clauses applicable across Europe. 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 Real Estate and Construction expert Nikolaus Weselik, partner at CMS Reich-Rohrwig Hainz. “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,” clarifies Nikolaus Weselik.
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 Weselik “while managers will be interested in the cost-saving potential of standardizing their legal texts. Occupiers will be pleased that the property remains sustainable throughout their tenancy, resulting in cost savings.”
Nikolaus Weselik concludes: “Our role as advisor is to take out the legal complexity of our clients’ operations so they can focus on running their business.”
The CMS e-guide: Green Lease Clauses in Europe – a practical approach is available as an e-guide. It can be accessed at: https://eguides.cmslegal.com/greenleaseclauses.