Green lease clauses
In January 2023 the Chancery Lane Project (TCLP) published a suite of green lease clauses for use in commercial leases in Ireland. The clauses aim to:
- promote co-operation between landlords and tenants in relation to the environmental performance of buildings
- address issues such as repair, alteration and rent review from the perspective of energy and sustainability ratings
- bring in circular economy and sustainability principles into a service charge regime, landlord regulations and landlord's works
As the Law Society of Ireland has noted, the clauses should not be treated as precedent clauses to be used in all commercial lease arrangements; they have been drafted primarily from the perspective of a lease of a new multi-let office. That being said, some clauses may be suitable for use in leases of other types of commercial property.
Some commercial property investors may have their own standard green lease clauses which have been drafted based on specific investment, funding and management requirements. Whilst the new clauses are intended to provide a more generic framework, it is important to stress that the clauses are extremely detailed and will require in-depth legal and technical advice, tailored to suit the specific circumstances of the property and letting arrangements.
For more information in relation to this topic, please contact Andrew Ion, Partner, Aoife Smyth, Knowledge Lawyer, or any member of ALG’s Real Estate team.
Date published: 30 March 2023